Developing nations seek IMF protection
Developing nations seek IMF protectionBy Chiwoyu Sinyangwe
Friday October 10, 2008 [04:00]
Finance minister Ng’andu Magande has said smaller nations will need protection from the current global financial turmoil, adding that governments in developing countries cannot easily bail out their institutions.
And finance ministers from poor and small Commonwealth countries say it is time the International Monetary Fund (IMF) protected them from financial effects caused by developed states.
Speaking in St Lucia Island during the finance ministers’ forum, Magande said big economies like the United States could easily bail out their institutions while smaller nations did not have the capacity to do so, hence the need for protection.
The calls by developing countries ministers came after Central Bank officials were advised to take a tighter check on the status of financial institutions in their respective countries.
Developing countries have argued that since they did not cause the financial crisis but their economies were bound to suffer, it was time the IMF acted.
The ministers further proposed that the IMF should either delay debt repayment by poor countries or scrap the debts altogether. Others suggested that the IMF should give grants or loans on concessionary rates to developing countries that will be hard hit.
Tanzania’s finance minister Mustafa Mkulo said smaller economies which will not have the capacity to repay borrowed funds, should either be given grants or loans.
“With the current crisis and soaring prices of food and fuel, some highly indebted countries cannot sustain more debts…so IMF should think of ways to assist them,” said Mkulo.
posted by MrK @ 3:41 AM
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