I.M.F. calls for new effort

Press, 27 June 1987, Page 10

I.M.F. calls for new effort

NZPA-Reuter Washington The International Monetary Fund’s managing director, Michel Camdessus, said yesterday the economic situation in the developing world was weakening and vast new assistance efforts are needed. He said that the industrial countries should do all they can to keep the global economy, from stagnating, including opening < their vast markets to goods from the developing world. “The external position of developing countries has weakened anew,” he said. Mr Camdessus spoke

before the Economic and Social Council of the United Nations in Geneva. An advance copy of his remarks was made available by his office in Washington.

The middle-income debtor nations of Latin America need time to reform their situation and called on the cqmmercial banks to keep up their flow of funds into these countries. “For countries in this group that are prepared to undertake strong programmes of adjustment and structural reform, it is the timely provision of additional credit by banks that is most needed,” he said.

For the very poorest countries such as those in sub-Saharan Africa, Mr Camdessus said that a broad increase in assistance is needed. “It is therefore imperative that the international community give renewed hope to these countries by showing its willingness to provide increased aid and exceptional financial help in support of major efforts that they would be prepared to make to strengthen their economies,” he said.

Mr Camdessus pointed out that he proposed and has received backing by the seven leading industrial democracies for a

tripling of the I.M.F.’s socalled Structural Adjustment Facility which assists the very poorest countries.

The facility is financed at about SUS3BO million, and Mr Camdessus said that this amount “is totally insufficient.”

The I.M.F. executive made it clear that while the agency believes countries must sometimes pull in their belts and take tough austerity measures to cool their economies, the goal of the exercise is sustainable growth. <

' - He : said ; that adjustment dr reform of economies and growth go together.