"IMF" calling for the creation of a global financial safety net for times of crisis

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"IMF" calling for the creation of a global financial safety net for times of crisis

International Monetary Fund

  February 05 2016 13:12

Direct: The head of the International Monetary Fund Christine Lagarde, she predicted increasing demand emerging markets to get financial support from the World Bank and other financial institutions, the IMF at a time when these markets are struggling these challenges, according to the Agency for the Chinese news agency "Xinhua".

She added that to ensure a more secure flows of capital, Lagarde called for emerging markets to enhance the resilience of their financial systems by adopting prudent macroeconomic policies more powerful. Advanced economies also called for strengthening the supervisory framework to monitor the creative flow of short-term debt.

Lagarde called for the creation of a global financial safety net stronger to ensure the availability of financial resources in times of crisis and adversity.

She highlighted in her speech, also on the main challenges facing the emerging economies, including slower growth in China and low commodity prices and the divergence of monetary policy between the United States and other major central banks.

President of the International Monetary Fund said in a speech at the University of Maryland that slowing growth in China in the short term can have side effects through trade and low demand for goods.

And rebalancing undertaken by China, which is moving from investment to services and domestic consumption process will lead to a long-term record of more sustainable growth and achieve the interest of both China and the world.

Lagarde added that despite the difficulties and twists and turns, but that China is able to manage the transition of growth without causing a rough landing. In addition, Lagarde called on China to continue to push forward market-oriented reforms forward such reforms relating to state-run companies.

She said that "China is a huge transition and multi-faceted and do not expect a decline of China's rough around the modern house for many years."