IMF may face resource crunch: Chief

The International Monetary Fund may be out of resources in the next 6-8 months its Managing Director warned.

Written by Agencies | Kuala Lumpur | Published: February 7, 2009 4:48:52 pm

The International Monetary Fund may be out of resources in the next 6-8 months as the current financial crisis may require more funds,its Managing Director Dominique Strauss-Kahn warned.

“Today,the IMF’s resources are enough to face the situation but because we are facing a global crisis,the needs may be much bigger than previously. We have to intervene in Asia,Africa and Central Europe,Latin America,may be elsewhere. (So) I can’t promise that in 6-8 months from now,we will have enough resources,” he told reporters.

Noting that Japan had offered to add 100 billion dollars to the fund’s resources,Strauss-Kahn urged other countries to follow Japan’s example to enable the world body to aid the global crisis.

Earlier in his speech at the 44th SEACEN (The South East Asian Central Banks) Governor’s Conference here,Strauss-Kahn commended central banks across Asia for being alert and acting swiftly by reducing interest rates to stimulate economic activity.

He said the Reserve Bank of India and Bank of Korea had perhaps been most aggressive in cutting interest rates.

He admitted that monetary policy alone would not be enough to offset the disruption in financial markets and the severity of the downturn,adding that not every country could undertake fiscal stimulus.

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