Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

IMF's Lipton urges less austerity if growth hurt  Join our daily free Newsletter

MENAFN - AFP - 12/11/2012

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - AFP) The IMF's number-two official, David Lipton, warned Monday that policymakers should temper austerity measures aimed at reducing debt if they are damaging economic growth.

Lipton, the IMF first deputy managing director, said at a London conference that despite progress since the 2008-2009 global financial meltdown, "this crisis is proving very hard to end."

Deleveraging by nations and banks is necessary to restore stability, he said, but it weighs on a rebound in economic activity by curbing credit and public investment.

"Fiscal consolidation alongside private sector deleveraging has dampened demand, and the near-term effect on activity has been larger than anticipated in several countries," he said, according to the prepared text of his speech.

"Deleveraging is necessary, but it should be implemented at a speed and in a way that minimizes the impact on growth," he added.

For several weeks, the IMF has suggested that it had underestimated the impact of austerity programs in Europe, particularly in the eurozone countries under IMF-European Union rescue programs, such as Greece and Portugal, and shown a more accommodating attitude.

"In case of large negative shocks or growth disappointments, the pace of consolidation should be smoothed in countries that can afford it," Lipton said.

The IMF official also cautioned against undesirable effects from reforms of the international banking system that could constrict lending.

"It is crucial to strike a proper balance between the necessary strengthening of the financial system via robust implementation, while cushioning the impact of the adjustment on activity with policies geared towards supporting growth," he said.

The new Basel III rules for strengthening banking capital are meeting resistance around the globe.

On Friday, the United States announced that it would not implement Basel III on the January 1 deadline, and gave no guidance on when it could meet the tougher capital standards.


 






  MENA News Headlines


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help