IMF OKs Greece loan as Europe tries to stem crisis - MarketWatch

IMF OKs Greece loan as Europe tries to stem crisis - MarketWatch: "WASHINGTON (MarketWatch) -- The executive board of the International Monetary Fund on Sunday approved a three-year, $30 billion loan for Greece to help the debt-wracked country meet its obligations as European Union leaders scrambled to keep the crisis from spreading to other member nations."

Greece asks for EU-IMF bailout - Yahoo! Finance

Greece asks for EU-IMF bailout - Yahoo! Finance: "ATHENS, Greece (AP) -- Greece asked Friday for the activation of a financial rescue plan by the eurozone and International Monetary Fund, in the hope it will help the heavily indebted country out of a major crisis and give it the breathing space to put its finances in order."

IMF assures Pakistan of next loan tranche

IMF assures Pakistan of next loan trancheIslamabad: The International Monetary Fund will approve the next tranche of a 11.35 billion-dollar loan to Pakistan in May, the Prime Minister's office here said on Wednesday.

USD 114 million in emergency aid to Haiti by IMF

The International Monetary Fund has said it was rushing USD 114 million in emergency aid to Haiti this week to help it cope with the aftermath of a devastating earthquake.

The IMF executive board approved an increase of USD 102 million to Haiti's Extended Credit Facility, the Washington- based institution said in a statement yesterday.

The additional money "will help Haiti cope with the aftermath of the massive and disastrous earthquake that struck the country on January 12," it said.

"With the approval of this additional financing, a total of 114 million dollars will be disbursed by the end of this week, constituting the largest amount made available so far to the Haitian authorities after the earthquake."

Global recovery stronger than expected - IMF chief

The world economy is still fragile but the recovery from the financial crisis has been significantly faster than the International Monetary Fund expected, the head of the institution said on Thursday. IMF Managing Director Dominique Strauss-Kahn said the IMF would unveil more upbeat growth forecasts in an update of the fund's World Economic Outlook later this month.

1.2 billion USD to pak approved by IMF

The Executive Board of the International Monetary Fund (IMF) today approved immediate disbursement of USD1.2 billion to Pakistan following a third review of its economic performance.

With this Pakistan has so far received USD 6.54 billion from the IMF under this programme supported by a Stand-By-Arrangement.In November 2008, the IMF had approved about USD8.11 billion; which are being disbursed in phases; based on Pakistan's economic performance.

Noting that stabilisation was progressing on the macro front and appreciating the steps being taken by the government towards structural reform in putting in place the framework for moving toward a value-added tax; the IMF?s Mission Chief to Pakistan Adnan Mazarei said "significant challenges remain for the country".

IMF official warns of bubbles in emerging markets

Some emerging economies are at risk of uncontrolable capital movements, bubbles, and accumulation of reserves, the IMF's chief economist Olivier Blanchard said in an interview published on Monday.

"These countries have interest rates that are higher than the developed countries and more pressure on their exchange rates," Blanchard said in an interview with France's Le Monde newspaper.

"It can only be difficult for Brazil to see the real appreciating when the yuan is weakening with the dollar."

The International Monetary Fund official also said countries were moving towards more diversification in their foreign exchange reserves. This was desirable, but it would not lead to a collapse of the U.S. dollar, he said

Recovery in the U.S. economy remains sluggish

The International Monetary Fund's managing director, Dominique Strauss-Kahn, said on Friday the pace of the recovery in the U.S. economy remains sluggish but he does not believe there will be a double-dip recession.

He also said China's economic stimulus is helping to rebalance its economy towards relying more on domestic demand but it still needs to let its currency rise over time.

In October, the IMF raised its U.S. growth outlook to 1.5 percent in 2010 but Strauss-Kahn said that forecast could be on the pessimistic side.

"Our forecast has that, not only in the United States but also for the rest of the world, 2010 will be a year of recovery," Strauss-Kahn told a news conference in Singapore where he was attending an Asia Pacific Economic Cooperation (APEC) meeting.

"I must say, in some respects, we had been a little pessimistic because growth has resumed a little earlier than expected, by one quarter or so."

He said the dollar had remained resilient throughout the global crisis but most Asian currencies were undervalued and reiterated calls for the Chinese yuan to be revalued.

"China's economy in the coming years will be focused on domestic growth and the value of renminbi will have to be increased," he said.

IMF chief says stimulus packages must be kept

Encouraging economic data in Europe and the United States does not mean the global economic crisis is over, International Monetary Fund managing director Dominique Strauss-Kahn said on Friday.

He said fiscal stimulus packages must be kept in place until unemployment starts to fall, which is likely to take 10 to 12 months.

Asia recovering rapidly; but challenges ahead: IMF

The economic recovery in Asia is faster than the rest of the world and is projected to grow by 5.75 per cent during 2010, says the International Monetary Fund.

"The region (Asia) is out pacing other parts of the world, with the "green shoots" of recovery appearing earlier and taking firmer roots than elsewhere," the IMF said in its regional economic outlook today.

IMF forecasts suggest Asia will grow by 5.75 per cent in 2010, higher than the 1.25 per cent predicted for the G-7 economies, but short of the 6.66 per cent average recorded for the region over the past decade.

"Asian economies have been very strong in their stimulus from both monetary and fiscal sources," IMF Asia and Pacific Department Director Anoop Singh said.

source:PTI

IMF: 2 or 3 members to be added

International Monetary Fund managing director Dominique Strauss-Kahn said the Group of 20 of the world's biggest economies would have a more global reach if it included a few new members.

"We could add two or three countries," Strauss-Kahn told reporters after a speech in the Norwegian capital on Friday.

He did not name any countries that he believes should be added but said that, for example, Scandinavian countries did not have a seat at the G20, nor did African states.

Asked if he was concerned about other countries imposing a tax on capital inflows as Brazil has done, he said: "No, I'm not afraid and it's not that important. I am not sure if it's that effective or manageable."

IMF: 2 or 3 members to be added

International Monetary Fund managing director Dominique Strauss-Kahn said the Group of 20 of the world's biggest economies would have a more global reach if it included a few new members.

"We could add two or three countries," Strauss-Kahn told reporters after a speech in the Norwegian capital on Friday.

He did not name any countries that he believes should be added but said that, for example, Scandinavian countries did not have a seat at the G20, nor did African states.

Asked if he was concerned about other countries imposing a tax on capital inflows as Brazil has done, he said: "No, I'm not afraid and it's not that important. I am not sure if it's that effective or manageable."

IMF pledges voting reform

A key panel of the International Monetary Fund says it supports giving more voting power to emerging market and developing countries.

In a statement, the group's International Monetary and Financial Committee says it supports a shift of at least 5 percent of voting power from countries with ample representation to those with little influence.

The committee, which sets the IMF's agenda, said today that it was also committed to protecting the voting share of its poorest members.

The statement came at the IMF's annual meeting, held this year in Istanbul. It followed a decision at a Pittsburgh forum that the G-20 nations would become the world's main economic decision-making forum, effectively taking over the role of the G-7 group of rich countries.

IMF policy panel endorses G20 economic plan

The International Monetary Fund today endorsed a Group of 20 programme for sustainable global economic growth, including an increase in voting rights for under-represented countries.

"We welcome the outcomes of the G20 summit Pittsburgh and support its commitment to articulating policies for strong, sustained and balanced growth in the global economy," the IMF's policy-setting International Monetary and Financial Committee (IMFC) said after a meeting in Istanbul.

The G20 largest rich and emerging-market economies, meeting in the US city a little more than a week ago, asked the IMF to shepherd their coordinated programme to build sustained growth as the world economy recovers from the worst recession since World War II.

Continue stimulus packages

IMF today asked most Asian countries to continue with monetary and fiscal stimuli till signs of economic recovery are clear.

The advice by a key IMF official came even as he said global economy is beginning to pull out of recession and Asian giants, India and China, are leading the recovery of developing nations.

"Real GDP in the second quarter surprised mostly on the upside, with an expansion in France, Germany and Japan and a slower pace of contraction esewhere, including in the United States," IMF Director (Asia and Pacific Department) Anoop Singh said at a press conference in Istanbul ahead of Fund-Bank meeting from October six.

"Emerging economies, led by China and India, are turning around even more strongly," he said.

Exit strategies

*The key challenges involve mapping a course between unwinding public interventions too early and too late, and maintaining market confidence in the sustainability of public finances. Clear communication of exit strategies will be critical.
*Central banks will eventually need to unwind their extraordinary liquidity and credit support, but may need to start tightening their monetary stance well before balance sheets are fully restored.
*Fiscal support should be maintained while the recovery is still fragile. Eventual adjustment will need to be large, particularly for advanced economies where public debts are rising rapidly, underpinned by a major reform of entitlements.

Policy implementation and effectiveness

*Bold and wide-reaching policy measures implemented by G-20 economies have helped stabilize confidence, limit the threat of further financial instability, and provided an impetus to economic growth.
*Policymakers must, however, avoid becoming complacent, and should move rapidly to implement policies already proposed. Most notably, greater progress needs to be made in recapitalizing viable banks as needed.
*Considerable fiscal stimulus remains in the pipeline through 2010 for the G-20 as a whole, and should be implemented expeditiously to maximize the impact on growth and employment.

Global economic outlook

*The global economy is beginning to grow again, but the recovery is likely to be sluggish and policy support needs to be sustained until the expansion is firmly established.
*Financial conditions have continued to improve, but the global financial system is far from normal, and many markets remain dependent on public support. Banking systems are still undercapitalized and saddled with impaired assets, suggesting that deleveraging pressures will remain a constraint on bank credit for some time.
*The overarching risk to the outlook is that the recovery stalls, either because of a premature exit from accommodative macroeconomic policies or because measures to restore health to bank balance sheets are not fully implemented. Fiscal sustainability issues are also coming to the fore.

World recovering faster than expected says IMF

The International Monetary Fund said the global economy is recovering faster than expected, but that governments should not be hasty in withdrawing the added spending and low interest rates that have helped restore growth.

The positive report card today is likely to feed cautious but widespread relief that, despite a continuing rise in unemployment and worries about credit availability, the downturn has eased and that a 1930s-style depression has been avoided.

According to the twice-yearly World Economic Outlook, the world is poised to grow by 3.1 per cent in 2010 with much of the recovery driven by emerging economies such as China and India. That is up from the 2.5 per cent in the IMF's previous set of estimates.

And for 2009, the IMF now expects a 1.1 per cent decline of global GDP instead of the 1.4 per cent contraction it predicted in July.