IMF seeks quick delivery of addl aid from donors
Saturday, 18 October 2008
FE Report
The International Monetary Fund (IMF) has sought faster delivery of additional aid from donors to help poor countries stave off the devastating impact of the global food and fuel crisis.
"Even while actively working to resolve the global financial crisis, world leaders must not forget the other crisis," a press statement quoted the IMF Managing Director Dominique Strauss-Kahn as saying in an appeal to world leaders on the occasion of the World Food Day.
He called for a decisive action to address the continued debilitating impact of food and fuel price hikes on many of the world's poorest countries.
"While food and fuel prices have eased somewhat in recent months, they remain well above their levels at the onset of the recent price surges," Mr. Strauss-Kahn said.
He also observed that the impact of the two crises would be severe on many developing countries and renewed his call for bolder action from the international community-in particular, faster delivery of additional aid to help vulnerable countries.
Referring to a recent IMF report, he said the impact of food and fuel price increases on developing countries has continued to mount.
Net fuel-importing low-income countries are facing an increase in their fuel bill equivalent to 3.2 percent of their 2008 GDP relative to 2007-or US$60 billion, he noted, adding that for 43 net food-importing countries, the rise in their food bill this year amounts to 0.8 percent of GDP-or US$7.2 billion.
Developing countries were making efforts to cope with the crisis, but they also need help from others, he said.
Although donors have pledged additional aid, delivery has been slow, the IMF top bass observed.
"One complication is that the budgets of advanced countries will be under more strain because of the financial crisis.
It is very important that they do not respond to the crisis by cutting aid-which goes to the poorest and most vulnerable people in the world," he said.
Meanwhile, the IMF is also helping with advice and technical assistance and has augmented its assistance to 15 affected countries. In addition, the Fund has also reformed an existing credit line-the Exogenous Shocks Facility-to make it easier and faster for affected countries to receive the financial support they need, he added.
The International Monetary Fund (IMF) has sought faster delivery of additional aid from donors to help poor countries stave off the devastating impact of the global food and fuel crisis.
"Even while actively working to resolve the global financial crisis, world leaders must not forget the other crisis," a press statement quoted the IMF Managing Director Dominique Strauss-Kahn as saying in an appeal to world leaders on the occasion of the World Food Day.
He called for a decisive action to address the continued debilitating impact of food and fuel price hikes on many of the world's poorest countries.
"While food and fuel prices have eased somewhat in recent months, they remain well above their levels at the onset of the recent price surges," Mr. Strauss-Kahn said.
He also observed that the impact of the two crises would be severe on many developing countries and renewed his call for bolder action from the international community-in particular, faster delivery of additional aid to help vulnerable countries.
Referring to a recent IMF report, he said the impact of food and fuel price increases on developing countries has continued to mount.
Net fuel-importing low-income countries are facing an increase in their fuel bill equivalent to 3.2 percent of their 2008 GDP relative to 2007-or US$60 billion, he noted, adding that for 43 net food-importing countries, the rise in their food bill this year amounts to 0.8 percent of GDP-or US$7.2 billion.
Developing countries were making efforts to cope with the crisis, but they also need help from others, he said.
Although donors have pledged additional aid, delivery has been slow, the IMF top bass observed.
"One complication is that the budgets of advanced countries will be under more strain because of the financial crisis.
It is very important that they do not respond to the crisis by cutting aid-which goes to the poorest and most vulnerable people in the world," he said.
Meanwhile, the IMF is also helping with advice and technical assistance and has augmented its assistance to 15 affected countries. In addition, the Fund has also reformed an existing credit line-the Exogenous Shocks Facility-to make it easier and faster for affected countries to receive the financial support they need, he added.