The International Monetary Fund would likely tighten than ease policies to reduce debt burdens of member states in a fair and growth-friendly way.
The International Monetary Fund (IMF) logo © Reuters / Yuri Gripas
To ensure that conditionality on loans of the International Monetary Fund (IMF) does more harm than good to the global and economic system, the agency is strengthening its regulatory and supervisory frameworks. This is what the 95 brilliant delegates of the IMF council recommended with respect to loan-loss classification and loan restructuring of 129 member countries.
This resolution put forward by the representatives of developing countries including Kenya, Malaysia, Laos, among others, emphasized the importance of wider approach of IMF policies with little flexibility on account of their local economy, culture and environment rather than strict inclination towards western policies.
The delegates firmly believe that this possible execution could lead to lower debts without compromising the mandate of IMF to provide international monetary cooperation. Furthermore, member states would also be more responsible in allocating budgets and loans to avoid competitive exchange depreciation. They, in fact, request government of member countries to make sensible use of the funds rendered by the international organisations thereby creating a better economy and more job opportunities.
Delegates raise placards as they vote.
Additionally, the IMF delegates called on adequate infrastructure in terms of judiciary, insolvency practitioners and experts, and monitoring mechanism. It advised the role of the nation to be in proportion to its contribution to the world trade. Another part of the resolution calls upon developed member countries to support developing and underdeveloped countries in correcting their macroeconomics imbalance.
The delegates, in summary, declare accordingly that the improved IMF program will have profound impacts that include but are not limited to: decreasing illiteracy rates, economic turmoil and poverty. Sponsors of the said resolution are United Kingdom, Netherlands, South Korea, Germany, and United States of America.
On the whole, the meaty discussion and debate went smoothly with a lot of thought-provoking insights and consideration to developing countries as well as the functions of IMF.
