IMF welcomes Cannes action plan for growth and jobs

Washington, Nov 5 (PTI) The International Monetary Fund (IMF) has welcomed the Cannes Action Plan for Growth and Jobs announced at the G-20 Summit in France, which it said would help in promoting a more sustainable global economy. "I welcome the Cannes Action Plan for Growth and Jobs as well as the other steps announced at the Summit, including the measures that will support the IMF in assisting our member countries and in promoting a more sustainable global economy," IMF Managing Director Christine Lagarde said in a statement on Friday. "The G-20 Leaders recognised that we all face daunting policy challenges as the world economy has entered a more uncertain phase. "While more work remains to be done, our two days of active discussion in Cannes have shown that we can find common ground for the greater good," she said. Lagarde said that she is encouraged by the support given by the G-20 Leaders to strengthen the role of the IMF in three areas: "First, I welcome the G-20 commitment to ensure that the Fund will continue to have adequate resources to play its systemic role, for the benefit of our whole membership. "Second, building on steps already taken to enhance our lending tool kit to help our global membership cope with crises, I will work expeditiously with the IMF's Executive Board towards adopting a new Precautionary and Liquidity Line (PLL) to provide increased and more flexible short-term liquidity to countries with strong policies and fundamentals facing systemic shocks. "Third, the G-20 underlined the importance of strengthening further IMF surveillance. In this context, we will make proposals for a new integrated decision on surveillance early next year with the goal of increasing ownership, traction and effectiveness." Legarde also noted that the G-20 meeting also took significant steps towards a more stable and resilient international monetary system. This includes agreement on Coherent Conclusions for the Management of Capital Flows, as well as steps towards broadening the Special Drawing Rights (SDR) basket in line with the goal of further diversifying the global currency system, Lagarde said. The Leaders' agreement to continue to strengthen financial regulation is also very important. "A healthier and safer financial sector is needed to supply the credit needed to finance the recovery and serve the needs of the real economy, including job creation," Lagarde added. PTI