The FSF is an international group that includes central banks, the IMF and other financial and regulatory bodies that was tasked last year with drawing up an initial response to the unfolding crisis sparked by the collapse of the US subprime mortgage market. -- PHOTO: REUTERS
WASHINGTON - THE International Monetary Fund and the Financial Stability Forum said on Friday they will cooperate to provide an early-warning system in an effort to prevent financial crises.
The FSF is an international group that includes central banks, the IMF and other financial and regulatory bodies that was tasked last year with drawing up an initial response to the unfolding crisis sparked by the collapse of the US subprime mortgage market.
'The financial crisis has underscored the importance of international coordination both in responding to the crisis and in developing and implementing policies for a sounder financial system,' the IMF and the FSF said in a joint letter to the Group of 20 industrialised and emerging countries.
'The IMF and the FSF will cooperate in conducting early-warning exercises,' they said in the letter, released hours ahead of the opening of a G20 summit hosted by US President George W. Bush in Washington to address the global financial crisis and take steps toward preventing future crises.
The letter was signed by IMF managing director Dominique Strauss-Kahn and FSF chairman Mario Draghi, the head of the Bank of Italy. -- AFP
