ID :
57549
Mon, 04/27/2009 - 06:19
Auther :
Shortlink :
http://m.oananews.org//node/57549
The shortlink copeid
Geithner urges progress in beefing up IMF lending capacity+
WASHINGTON, April 25 Kyodo - U.S. Treasury Secretary Timothy Geithner on Saturday urged ''significant'' progress in giving the International Monetary Fund more ammunition to fight the unfolding global financial crisis and economic downturn.
Speaking at a meeting of the IMF policy-setting International Monetary and
Financial Committee, he was referring to a plan to expand the IMF's existing
emergency lending facility called the New Arrangements to Borrow, or NAB, by up
to $500 billion.
''In order to ensure recovery, the IMF must...have adequate resources and
instruments to respond forcefully to address the needs of its emerging market
and developing country members hard hit by the global crisis,'' Geithner said.
''In the context of the current crisis, we support the use of IMF resources to
support the fiscal needs of countries with solid medium-term fiscal
prospects,'' he said.
Specifically, the U.S. treasury chief said, ''Significant progress toward the
goal of NAB expansion must be an important outcome of these meetings. The
international community should act quickly.''
Geithner welcomed contributions from other countries, including a signed deal
to borrow $100 billion from Japan and offers for similar sums from the European
Union and the United States.
The plan is to roll that money into the NAB and expand it to $550 billion from
the current $50 billion to aid countries in Latin America, Eastern Europe and
elsewhere that are reeling from steep declines in exports and foreign
investments.
At the urging of some major emerging economies, IMF Managing Director Dominique
Strauss-Kahn said later in the day that the IMF will sell bonds to raise the
extra money.
Brazil, Russia, India and China -- the so-called BRIC nations -- insisted the
IMF consider issuing bonds as a means to raise support. These countries want
greater voice in the IMF before providing loans.
Geithner said it is high time to reform IMF governance.
''This is essential to strengthening the IMF's legitimacy, ensuring that it
remains at the center of the international monetary system and reflects the
realities of the 21st century,'' he said.
The reform would require drastic adjustments to the IMF voting structure
through a redistribution of IMF quotas, which determine each member's voting
power and borrowing limit.
''Much bolder action is required to realign quotas toward dynamic
emerging-market economies, and the next general quota review is an opportunity
that must be seized,'' Geithner said.
''Minor adjustments around the edges are inadequate to an IMF for the 21st
century,'' he said.
The U.S. treasury chief also called for cutting the size the IMF Executive
Board to 22 chairs from 24 by 2010 and to 20 chairs by 2012, while maintaining
the number of emerging and developing country board members.
''The composition of the board must also better reflect the realities of the
global economy,'' he said.
==Kyodo
Speaking at a meeting of the IMF policy-setting International Monetary and
Financial Committee, he was referring to a plan to expand the IMF's existing
emergency lending facility called the New Arrangements to Borrow, or NAB, by up
to $500 billion.
''In order to ensure recovery, the IMF must...have adequate resources and
instruments to respond forcefully to address the needs of its emerging market
and developing country members hard hit by the global crisis,'' Geithner said.
''In the context of the current crisis, we support the use of IMF resources to
support the fiscal needs of countries with solid medium-term fiscal
prospects,'' he said.
Specifically, the U.S. treasury chief said, ''Significant progress toward the
goal of NAB expansion must be an important outcome of these meetings. The
international community should act quickly.''
Geithner welcomed contributions from other countries, including a signed deal
to borrow $100 billion from Japan and offers for similar sums from the European
Union and the United States.
The plan is to roll that money into the NAB and expand it to $550 billion from
the current $50 billion to aid countries in Latin America, Eastern Europe and
elsewhere that are reeling from steep declines in exports and foreign
investments.
At the urging of some major emerging economies, IMF Managing Director Dominique
Strauss-Kahn said later in the day that the IMF will sell bonds to raise the
extra money.
Brazil, Russia, India and China -- the so-called BRIC nations -- insisted the
IMF consider issuing bonds as a means to raise support. These countries want
greater voice in the IMF before providing loans.
Geithner said it is high time to reform IMF governance.
''This is essential to strengthening the IMF's legitimacy, ensuring that it
remains at the center of the international monetary system and reflects the
realities of the 21st century,'' he said.
The reform would require drastic adjustments to the IMF voting structure
through a redistribution of IMF quotas, which determine each member's voting
power and borrowing limit.
''Much bolder action is required to realign quotas toward dynamic
emerging-market economies, and the next general quota review is an opportunity
that must be seized,'' Geithner said.
''Minor adjustments around the edges are inadequate to an IMF for the 21st
century,'' he said.
The U.S. treasury chief also called for cutting the size the IMF Executive
Board to 22 chairs from 24 by 2010 and to 20 chairs by 2012, while maintaining
the number of emerging and developing country board members.
''The composition of the board must also better reflect the realities of the
global economy,'' he said.
==Kyodo
