IMF:Latin America Has Making Progress
In Structural Reforms
Dow Jones Newswires
WASHINGTON -- Economic policy makers from nine Latin American
countries on Thursday pledged to maintain their current economic plans
and take further steps, "if needed, to preserve overall macroeconomic
stability" in the midst of the global market crisis.
"The authorities noted that the external environment had deteriorated
further in recent weeks, especially reflecting market reactions to the crisis
in Russia. Against this background, they reaffirmed their commitment to
promote sustained growth," said a communique issued after the first day of
meetings with International Monetary Fund officials here.
The statement said each country in the region needs to keep its current
exchange rate scheme in place, maintain open capital markets and deepen
structural reforms.
It also cited the need for "strategies to better manage risks" from market
volatility, and called on international financial institutions to look at possible
ways to respond to such turbulence.
According to the communique, the Fund expressed its confidence that
Latin America could "carry out these policies in a timely manner." Along
those lines, the IMF "stands ready to recommend the strengthening and
broadening" of the support it already offers several of the nations in the
region, the statement said.
In addition, the statement said further "regional surveillance" would be
done at the annual meeting of the IMF and World Bank, to be held in
October.
The current round of talks, which will continue Friday, has been billed as
an effort by Latin America to distinguish itself from the largely external
forces that have unsettled global markets.
The more-recent Russia-led turmoil followed earlier woes that hit Latin
America particularly hard, such as slumping commodities prices, the
downturn in Asia, adverse weather conditions and volatile capital markets.
A series of measures already taken by the countries in the region were
seen as "critical" to preserve the region's economic progress, "a fact that
should be reflected in market sentiment."
The meetings include finance ministers and central bank presidents from
Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay and
Venzuela. On Thursday, U.S. Treasury Secretary Robert Rubin, Federal
Reserve Vice Chairman Alice Rivlin and top Canadian officials also
participated. |
