Members of the International Monetary Fund (IMF) pledged to formulate sustainable financial policies at the closing session of their spring meeting held in Washington DC two days ago.
Egyptian Finance Minister and Chairman of the IMF’s International Financial and Monetary Committee (IFMC) Youssef Boutros-Ghali emphasized the importance of reviewing the mechanisms adopted by the world body to “help” developing countries.
According to a statement issued by the IFMC, increasing public debt–a phenomenon that affects developed states in particular–represents a chief threat to the international financial order and economic growth.
Boutros-Ghali said he had warned against the failure to adopt procedures aimed at addressing the unfolding global financial crisis, repercussions of which have been felt by the European Union. Britain, France, Japan and Brazil, meanwhile, had all voiced similar fears, Boutros-Ghali added.
He went on to stress the need for reviewing the IMF’s monitoring and follow-up mechanisms with a view to preventing national financial crises like that which recently struck Greece.
Boutros-Ghali added that the committee had requested that he consult with members of the IFMC to outline the procedures needed to reform the IMF. Proposals from this meeting would then be submitted to heads of state at a scheduled gathering in Seoul, South Korea next November.
Translated from the Arabic Edition.
