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To: Kirk © who wrote (8092)	9/23/1998 12:59:00 AM
From: Jeffrey D	Respond to of 42834

IMF's Camdessus is bullish on Latin America and for the world economy in 1999. Sorry, Russia not included in the good news. Jeff <<PARIS, Sept 22 (AFP) - IMF managing director Michel Camdessus expressed confidence Tuesday that Latin American economies would not collapse amid the current global financial instability, adding that the IMF was ready to support them if necessary. In an interview to be published in Wednesday's Le Figaro daily, Camdessus said: "I am certain that Latin America will not fall". The head of the International Monetary Fund also dismissed fears of a "free fall leading to a world recession". The "most likely hypothesis for 1999" was slower growth rates than expected one year ago, he said. This slight growth would help alleviate the crisis in the worst-hit nations, particularly in Asia, according to Camdessus. Asked about Brazil, the Latin American country believed to be most vulnerable at present, he said the IMF was working with all countries in the region on "counter strategies" and reorganising their banking sectors. "If necessary, and if they ask us, we will give them our financial support", Camdessus said. He noted "with relief" that no countries in the region had introduced "protectionist methods". Camdessus said a gradual world recovery would be led by an expanding US economy and backed by a recovering Europe. He applauded the recent recognition by the G-7 industrialised nations that the principal threat came from reduced demand rather than inflation. On Russia, Camdessus said the IMF will only provide further support to Moscow if it puts fighting inflation as the key element in its anti-crisis package. Camdessus said the IMF is waiting to see whether the new Russian government "will have the will" to contain inflation. "The statements I have heard from the new government have been quite encouraging", he said. The IMF will be in position to provide stronger support if Russia "shows proof it is willing to help itself", he said. He added he was aware that prices in Russia had shot up as a result of the recent economic and financial crisis. Camdessus also used the interview to call on European governments not to use the economic crisis as an excuse to ease up on reducing their budget deficits. He said the reduction efforts made in Europe for 1998 and 199 were "too timid". Copyright c 1998, Agence France Presse, all rights reserved.