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IMF urges "immediate, forceful" policy action for crisis

178 views · Published 17 May 2009 · 0:40 · Indexed 20 September 2026

Channel: Euractiv · 2009 · News & Politics

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Addressing the Brussels Economic Forum 2009 today in Brussels, José Viñals, Financial Counsellor and Director of the Monetary and Capital Markets Department of the International Monetary Fund (IMF), said there is a need for immediate, forceful and effective policy action to restore confidence in the financial and the banking systems of many countries. 

We must continue to support bank intermediation through the provision of liquidity and funding guarantees; but in addition, we need to take measures, and this is an important issue for reflection, on how can we restart securitisation markets, he added.

The latest forecast by the IMF in its World Economic Outlook shows the global economy contracting in 2009 by 1.3%. While the rate of contraction should moderate from the second quarter of 2009 onward, output per capita is projected to decline in countries representing three-quarters of the global economy. Growth is projected to re-emerge in 2010, but at 1.9% it would be sluggish relative to past recoveries.

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