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10 October 2016
By Satish Kanady
DOHA: Qatar, along with its group countries, has urged International Monetary Fund (IMF) to work on sequencing of structural reforms and mechanisms to deepen financial markets and enhance financial inclusion in their respective economies.
“The Fund should continue to improve its analytical tools related to measuring fiscal space and prioritising structural reforms in order to better tailor its advice. We look forward to the planned integration of the streams of work in the Fund on capital flow management and macroprudential policies to support countries in building resilience”, Obaid Humaid Al Tayer Minister of State for Financial Affairs for the United Arab Emirates said on behalf of the group countries including Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Maldives, Oman, and Yemen at the IMF Financial Committee meeting in Washington on Friday.
In the Middle East region, growth has been constrained by the impact of prolonged low oil prices. Oil exporting countries have introduced significant fiscal consolidation measures including domestic fuel price increases, and reducing public sector wage growth and benefits. The group countries said they would appreciate the engagement of the IMF staff with the oil exporting countries on diversification policies.
Al Tayer said a well-resourced IMF is particularly important. “We look forward to further work on possible reform of the international monetary system and addressing gaps in the global financial safety net (GFSN). In this regard, we continue to see high-quality Fund surveillance, and well-regulated and supervised financial systems as the essential foundations of a strong GFSN.”
There is a strong case for further strengthening the Fund and its instruments. The group is looking forward to consideration of the adequate size of the Fund as part of the 15th General Review of Quotas to ensure the Fund can play its role at the center of the GFSN. According to the group countries, the size of the Fund’s quota resources has eroded relative to key financial indicators. “We support further work to broaden the use of the SDR and, in this regard, we congratulate the Chinese authorities for the inclusion of the renminbi in the SDR basket.”, Al Tayer said.
Greater efforts are needed on supply-side and structural reforms in both advanced economies and emerging market developing countries.
Addressing private sector debt overhangs and balance sheet problems is also essential.
“The Fund should remain vigilant in its surveillance and continue to stress that countries use this time of favourable financial conditions to build resilience against shocks and prepare against possible capital flow reversals once monetary conditions normalise. Concurrently, there is a need for better understanding of the factors behind the global productivity slowdown, especially in the context of technological change, as well as the sluggish growth in trade. The Fund should continue to improve its analytical tools related to measuring fiscal space and privatizing structural reforms in order to better tailor its advice. We look forward to the planned integration of the streams of work in the Fund on capital flow management and macroprudential policies to support countries in building resilience.”, Al Tayer said.
By Satish Kanady
DOHA: Qatar, along with its group countries, has urged International Monetary Fund (IMF) to work on sequencing of structural reforms and mechanisms to deepen financial markets and enhance financial inclusion in their respective economies.
“The Fund should continue to improve its analytical tools related to measuring fiscal space and prioritising structural reforms in order to better tailor its advice. We look forward to the planned integration of the streams of work in the Fund on capital flow management and macroprudential policies to support countries in building resilience”, Obaid Humaid Al Tayer Minister of State for Financial Affairs for the United Arab Emirates said on behalf of the group countries including Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Maldives, Oman, and Yemen at the IMF Financial Committee meeting in Washington on Friday.
In the Middle East region, growth has been constrained by the impact of prolonged low oil prices. Oil exporting countries have introduced significant fiscal consolidation measures including domestic fuel price increases, and reducing public sector wage growth and benefits. The group countries said they would appreciate the engagement of the IMF staff with the oil exporting countries on diversification policies.
Al Tayer said a well-resourced IMF is particularly important. “We look forward to further work on possible reform of the international monetary system and addressing gaps in the global financial safety net (GFSN). In this regard, we continue to see high-quality Fund surveillance, and well-regulated and supervised financial systems as the essential foundations of a strong GFSN.”
There is a strong case for further strengthening the Fund and its instruments. The group is looking forward to consideration of the adequate size of the Fund as part of the 15th General Review of Quotas to ensure the Fund can play its role at the center of the GFSN. According to the group countries, the size of the Fund’s quota resources has eroded relative to key financial indicators. “We support further work to broaden the use of the SDR and, in this regard, we congratulate the Chinese authorities for the inclusion of the renminbi in the SDR basket.”, Al Tayer said.
Greater efforts are needed on supply-side and structural reforms in both advanced economies and emerging market developing countries.
Addressing private sector debt overhangs and balance sheet problems is also essential.
“The Fund should remain vigilant in its surveillance and continue to stress that countries use this time of favourable financial conditions to build resilience against shocks and prepare against possible capital flow reversals once monetary conditions normalise. Concurrently, there is a need for better understanding of the factors behind the global productivity slowdown, especially in the context of technological change, as well as the sluggish growth in trade. The Fund should continue to improve its analytical tools related to measuring fiscal space and privatizing structural reforms in order to better tailor its advice. We look forward to the planned integration of the streams of work in the Fund on capital flow management and macroprudential policies to support countries in building resilience.”, Al Tayer said.
© The Peninsula 2016
