The International Monetary Fund (IMF) is ready to pull the trigger on reserve funds for any emerging economy that faces a current account crisis, the organization’s deputy managing director said at the World Economic Forum in Dalian, China.
“If a country has payment problems, which will cause not only financial instability but systemic instability as well, and if a country is willing to request service from the Fund, those are the basic issues. Our job is to maintain global financial stability, particularly on payment issues,” the IMF’s Zhu Min said.
Zhu’s comments echo those of IMF chief Christine Lagarde, who in August pledged policy advice and money through various instruments for emerging economies.
However, Zhu was quick to dismiss the possibility of a 1997 Asian financial crisis redux, citing the region’s strong fundamentals.
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