TURKEY: IMF and World Bank hold annual meeting in Istanbul

Record ID: 1519102

  • Title: TURKEY: IMF and World Bank hold annual meeting in Istanbul
  • Date: 3rd October 2009
  • Summary: ISTANBUL, TURKEY (OCTOBER 01, 2009 (REUTERS) AUDIENCE LISTENING SOUNDBITE (English) WORLD BANK PRESIDENT ROBERT ZOELLICK, SAYING: "We've broken the fall in financial markets but it's certainly too early to declare success, 2009 will continue to be a difficult year and 2010 when much of the stimulus went out will remain highly uncertain economic year." JOURNALISTS AND CAMERA OPERATORS ARRIVAL OF IMF MANAGING DIRECTOR DOMINIQUE STRAUSS-KAHN SOUNDBITE (English) IMF MANAGING DIRECTOR DOMINIQUE STRAUSS-KAHN, SAYING "If growth is coming back it is mainly because of the fiscal stimulus which has been implemented following the advice of IMF and by all the other countries having some fiscal rule. Now it does not mean that it is time to exit to implementing the exit strategy. Of course we have to think about it, we have to prepare the exit strategy, but it's not time to implement it." CAMERAMEN AND JOURNALISTS LINES UP SOUNDBITE (English) IMF MANAGING DIRECTOR DOMINIQUE STRAUSS-KAHN, SAYING "Then we have to start now. Time is always the enemy of reform. If we want to make a step forward we need to start as soon as possible here in Istanbul, this annual meeting may be the starting point of new IMF and you may say later when you will be talking with your grand children that you were in Istanbul at this time". JOURNALISTS SITTING SHOT OF SPEAKERS SITTING
  • Embargoed: 18th October 2009 23:16
  • Keywords:
  • Location: Turkey
  • Country: Turkey
  • Topics: International Relations,Finance
  • Reuters ID: LVA9UM63TXKKV4SFTFYJILSCYKAS
  • Aspect Ratio: 4:3
  • Story Text: World Bank President Robert Zoellick said on Friday (October 2nd) at a news conference in Istanbul that developing countries are still deeply hurt by the global economic downturn and the poverty-fighting institution needs more resources to help them.
    Speaking ahead of the start of the World Bank and International Monetary Fund in Istanbul, Zoellick said he will make a case this weekend to member nations to increase their financial contributions to the bank in the face of rising demand for its loans and grants. That increase would likely include funding from emerging economies in exchange for a greater say in the institution, he said, adding he was aware that budgets of rich nations were strained by the global financial crisis.
    Last week the group of 20 member nations proposed a shift in World Bank voting power from developed countries to developing nations of 3 percentage points next year.
    Unless it gets more funding from member countries, the World Bank has warned it will start facing serious financing constraints by the middle of next year.
    Zoellick said while some economies are seeing signs of economic recovery, the world's poorest are still being hurt by a drop in global trade, lower worker remittances and falling tourism revenues.
    He called on member countries to also support a proposal for a crisis facility for low-income countries, which would protect social programs during future financial crises.
    "We've broken the fall in financial markets but it's certainly too early to declare success, 2009 will be a difficult year and 2010 will be uncertain as governments begin to withdraw their intervention in the economy." Zoellick said.
    In the last fiscal year, the World Bank tripled lending to middle-income countries to 33 billion dollars and increased loans and grant handouts by 25 percent to 14 billion dollars for poorer ones.
    International Monetary Fund Managing Director Dominique Strauss-Kahn said on Friday it was not yet time to withdraw government economic stimulus because of rising unemployment and a still-damaged financial sector.
    Dominique Strauss-Kahn told a briefing at the International Monetary Fund's annual meetings here that withdrawing stimulus too quickly would hamper global recovery.
    "If growth is coming back it is mainly because of the fiscal stimulus which has been implemented following the advice of IMF and by all the other countries having fiscal rule. Now it does not mean that it is time to exit the implementing strategy. Of course we have to think about it, we have to prepare the exit strategy, but it's not time to implement it."
    Strauss-Kahn also said that "simplistic" tax on financial transactions would not be a good idea, but the IMF will continue work on proposals for systemic risk funding from the financial sector. But he added that the idea of having money coming from the financial sector to deal with systemic risks created by financial institutions is a good idea worth further study. The IMF will prepare a report on such special funding for the Group of 20 rich and developing economies, he added. Strauss-Kahn said at the conference that IMF should build credibility on financial terms as well as on legitimacy terms. He said the meetings in Istanbul would be a starting point.
    "Then we have to start now. Time is always the enemy of reform. If we want to make a step forward we need to start as soon as possible here in Istanbul this annual meeting may be the starting point of new IMF and you may say later when you will be talking with your grand children that you were in Istanbul at this time", Strauss-Kahn said.
    The World Bank Group/IMF Annual Meetings will go on until October 7.
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