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IMF working to boost help for well-managed nations

Aim is to strengthen safety nets amid volatile capital flows: Tharman

Published on Apr 14, 2014 6:53 AM
 
Deputy Prime Minister Tharman Shanmugaratnam, who is also chairman of the IMF's policy steering committee, the International Monetary and Financial Committee, told a press conference in Washington last Saturday that the fund is working on strengthening its safety nets. -- FILE PHOTO: AFP

WELL-MANAGED countries may, in the future, be able to get support from the International Monetary Fund (IMF) in times of crisis without necessarily having to meet the strict conditions it now imposes.

Deputy Prime Minister Tharman Shanmugaratnam, who is also chairman of the IMF's policy steering committee, the International Monetary and Financial Committee, told a press conference in Washington last Saturday that the fund is working on strengthening its safety nets.

Responding to a question from The Straits Times about measures to manage the volatility of capital flows, he said: "There is an important space in international finance that is still missing, and that involves quick assistance, quick liquidity at times of crises to well-managed countries without conditionality."

He added: "Even well-managed countries can run into difficulty, given the scale and volatility of capital flows. That is something which we discussed at some length. The fund is doing work on the development of possible new instruments as part of the international safety net."

 
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