In a message dated 9/12/99 5:20:22 PM Central Daylight Time, AOL News writes: << Subj: IMF Finds Signs of Global Recovery Date: 9/12/99 5:20:22 PM Central Daylight Time From: AOL News BCC: Ahab42 IMF Finds Signs of Global Recovery .c The Associated Press By MARTIN CRUTSINGER WASHINGTON (AP) - The global economy finally is showing signs of an upturn after struggling for more than two years with a virulent financial crisis, the International Monetary Fund said Sunday. The 182-nation lending organization said in its annual report that threats of economic troubles spreading have lessened considerably since last fall, when the collapse of the Russian ruble was felt around the world. ``This year the worst of the crisis seems well behind us,'' said the IMF's deputy managing director, Stanley Fischer. ``Most of the Asian crisis countries are recovering fast. ... Brazil's IMF-supported adjustment program is succeeding, and growth has been more rapid than expected. And the Russian economy too is doing better than expected.'' The IMF used the report to defend its handling of the currency crisis. In August 1998, it looked as if the crisis could drag down economies in the United States and elsewhere after Russia's botched ruble devaluation rocked financial markets from New York to Tokyo. The agency had assembled billions of dollars in rescue loans but appeared powerless to halt the spread of currency troubles that began in Thailand in July 1997. IMF critics also complained of excessive secrecy and a one-size-fits-all mentality toward economic recovery programs. Even with improvements in the overall economy, the IMF has been embarrassed again in recent days. Russia, the recipient of more IMF assistance than any other nation, is alleged to be involved in financial corruption, including bribery and massive money laundering through a New York bank. On Friday, the IMF announced it was suspending a $12 billion Indonesian loan program, citing a banking scandal and the government's conduct in East Timor. Also last week, the Netherlands government leaked a memo indicating that opposition from members of Congress representing gold-mining states had brought the IMF close to abandoning efforts to sell gold directly to the public. The sales would finance debt relief for poor countries. IMF officials insisted they were near agreement on a deal to use gold but avoid direct sales to the public, which the mining industry feared would depress already weak gold prices. The IMF annual report said it has acted numerous times in the past year to reduce secrecy surrounding its deliberations and force member countries to provide investors with more timely and accurate information about economic conditions. For the first time, the agency began seeking permission of member countries to post on the IMF's World Wide Web site results of annual IMF reviews of individual countries' economic performances. The IMF also began publishing the exact economic reforms that countries agree to implement in exchange for loans. ``We have come a very long way on transparency in just a few years,'' Fischer told reporters at a briefing on the annual report. The IMF said it had made less progress in restructuring the global financial system to reduce the likelihood of future crises. Still, the agency said nations were moving ahead with proposals to adopt standards of good conduct in banking and other areas. It conceded a lack of agreement on ways to ensure that IMF rescue loans not be used to bail out private investors who made risky bets in emerging markets. In one way, the IMF, which is having its annual meeting this month, is in far better shape financially to deal with the next crisis: Its members approved an increase in resources, which the report said stood at $76.6 billion in uncommitted reserves on April 30. That is more than double the level of a year earlier. But outstanding loans to troubled countries are up, to a record $90.8 billion at the end of April, or 20 percent higher than 12 months earlier. The Clinton administration won approval after a long struggle for an increase of $18 billion in U.S. support to the IMF. But Congress imposed numerous conditions aimed at pushing the agency to move more quickly toward changes in its operations. AP-NY-09-12-99 1819EDT Copyright 1999 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without prior written authority of The Associated Press. Announcement: America Online has added Reuters newswires to News Profiles. To add Reuters articles to your daily news delivery, go to KW: <A HREF="aol://5862:146">News Profiles</A> and click on "Modify Your News Profiles." Then click "Edit" and add Reuters from the list on the left. To edit your profile, go to keyword <A HREF="aol://1722:NewsProfiles">NewsProfiles</A>. For all of today's news, go to keyword <A HREF="aol://1722:News">News</A>. >>
IMF Finds Signs of Global Recovery .c The Associated Press By MARTIN CRUTSINGER WASHINGTON (AP) - The global economy finally is showing signs of an upturn after struggling for more than two years with a virulent financial crisis, the International Monetary Fund said Sunday. The 182-nation lending organization said in its annual report that threats of economic troubles spreading have lessened considerably since last fall, when the collapse of the Russian ruble was felt around the world. ``This year the worst of the crisis seems well behind us,'' said the IMF's deputy managing director, Stanley Fischer. ``Most of the Asian crisis countries are recovering fast. ... Brazil's IMF-supported adjustment program is succeeding, and growth has been more rapid than expected. And the Russian economy too is doing better than expected.'' The IMF used the report to defend its handling of the currency crisis. In August 1998, it looked as if the crisis could drag down economies in the United States and elsewhere after Russia's botched ruble devaluation rocked financial markets from New York to Tokyo. The agency had assembled billions of dollars in rescue loans but appeared powerless to halt the spread of currency troubles that began in Thailand in July 1997. IMF critics also complained of excessive secrecy and a one-size-fits-all mentality toward economic recovery programs. Even with improvements in the overall economy, the IMF has been embarrassed again in recent days. Russia, the recipient of more IMF assistance than any other nation, is alleged to be involved in financial corruption, including bribery and massive money laundering through a New York bank. On Friday, the IMF announced it was suspending a $12 billion Indonesian loan program, citing a banking scandal and the government's conduct in East Timor. Also last week, the Netherlands government leaked a memo indicating that opposition from members of Congress representing gold-mining states had brought the IMF close to abandoning efforts to sell gold directly to the public. The sales would finance debt relief for poor countries. IMF officials insisted they were near agreement on a deal to use gold but avoid direct sales to the public, which the mining industry feared would depress already weak gold prices. The IMF annual report said it has acted numerous times in the past year to reduce secrecy surrounding its deliberations and force member countries to provide investors with more timely and accurate information about economic conditions. For the first time, the agency began seeking permission of member countries to post on the IMF's World Wide Web site results of annual IMF reviews of individual countries' economic performances. The IMF also began publishing the exact economic reforms that countries agree to implement in exchange for loans. ``We have come a very long way on transparency in just a few years,'' Fischer told reporters at a briefing on the annual report. The IMF said it had made less progress in restructuring the global financial system to reduce the likelihood of future crises. Still, the agency said nations were moving ahead with proposals to adopt standards of good conduct in banking and other areas. It conceded a lack of agreement on ways to ensure that IMF rescue loans not be used to bail out private investors who made risky bets in emerging markets. In one way, the IMF, which is having its annual meeting this month, is in far better shape financially to deal with the next crisis: Its members approved an increase in resources, which the report said stood at $76.6 billion in uncommitted reserves on April 30. That is more than double the level of a year earlier. But outstanding loans to troubled countries are up, to a record $90.8 billion at the end of April, or 20 percent higher than 12 months earlier. The Clinton administration won approval after a long struggle for an increase of $18 billion in U.S. support to the IMF. But Congress imposed numerous conditions aimed at pushing the agency to move more quickly toward changes in its operations. AP-NY-09-12-99 1819EDT Copyright 1999 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without prior written authority of The Associated Press. Announcement: America Online has added Reuters newswires to News Profiles. To add Reuters articles to your daily news delivery, go to KW: <A HREF="aol://5862:146">News Profiles</A> and click on "Modify Your News Profiles." Then click "Edit" and add Reuters from the list on the left. To edit your profile, go to keyword <A HREF="aol://1722:NewsProfiles">NewsProfiles</A>. For all of today's news, go to keyword <A HREF="aol://1722:News">News</A>.
