This should bode well for the market if indeed announcement shortly:
Saturday October 10, 4:24 pm Eastern Time
U.S. Republicans say IMF compromise within reach
(changes lead, adds Rep. Callahan, Rep. Boehner, Sen. Lott)
By Adam Entous
WASHINGTON, Oct 10 (Reuters) - Top congressional Republicans said on Saturday they were near agreement with the White House on freeing up $18 billion for the International Monetary Fund to bail out the next wave of tottering economies.
U.S. Rep. Sonny Callahan, a top House negotiator, told Reuters a compromise could be announced later in the day after talks with White House officials. ''We're as close as we've ever been...I imagine we'll get that out of the way today,'' the Alabama Republican said.
Senate Majority Leader Trent Lott also said negotiations could be wrapped up quickly. ''I think we're pretty close to the language that we're going to put in the final package...The IMF conclusion might take five minutes,'' the Mississippi Republican told reporters.
Details of the possible compromise were not immediately available.
Republicans want the IMF to lend at market rates, slash loan maturities and publish detailed summaries of its secretive board meetings.
The U.S. administration has warned Republicans that some of their demands would be impossible to implement at the IMF, which reports to 182 governments, not just the United States.
But the White House is eager to quickly shore up confidence in the IMF's finances to tackle the global economic crisis, which has swept across Asia and Russia and thrown world financial markets into turmoil.
Earlier on Saturday, White House Chief of Staff Erskine Bowles told reporters the administration objected to portions of the Republican reform plan, which was unveiled on Thursday. ''We still have some significant problems,'' he said.
House Majority Leader Richard Armey, a Texas Republican, also said sticking points had to be worked out.
''There are some remaining issues, but I think they're very resolvable,'' said Rep. John Boehner of Ohio, a member of the House Republican leadership.
The $18 billion requested by President Bill Clinton has already been approved by the Senate. But the money has been held up for months in the House, which has agreed to only $3.4 billion of the funding.
Because of IMF rules, other countries are waiting for the United States, the fund's largest shareholder, to pay up before they chip in their share to replenish IMF coffers, drained by multibillion-dollar bailouts for Russia and three Asian states.
Under the Republican plan, IMF lending must be at market rates, adjusted for risk. If rates were increased, Republicans believe countries would have a new incentive to stick to sound economic policies, because it would be more expensive to turn to the IMF for a bailout.
Republicans have also demanded that no fund loan arrangement be for a period exceeding one year, to wean countries quickly off the IMF dole.
The Republican plan would require greater openness at the IMF, including public disclosure of full written summaries of executive board meetings and internal IMF documents on loan agreements. The IMF already releases information about loans and annual country reviews, but board meetings are held behind closed-doors and the discussions are kept secret.
The Republican proposal would also create an advisory commission to report to Congress on the future roles and responsibilities of the IMF, the World Bank, and the World Trade Organization.
Congressional aides have made clear that Republicans were willing to amend their reform conditions, but expected the White House to agree to some of the tough policy changes demanded by the leadership.
Bowles was expected to meet later on Saturday with top Republicans on IMF and other issues.
Ibexx |
