Dubai, Sept 28: India and other developing countries which have put in place sound economic policies have been assured by the International Monetary Fund (IMF) of all support in case they slip into a crisis due to certain developments and circumstances. "It is crucial for crisis prevention to build trust that countries with sound policy frameworks will be proactively supported by the fund in their efforts to resist contagion", according to a report on IMF's policy agenda.
Pointing out that even in the face of the best policy advice, crisis can occur, it said the fund will continue to play a key role in their resolution.
The IMF report said the fund is in the process of exploring how best to achieve this objective and to this end it is reviewing the contingent credit lines (CCL) facility, which is currently scheduled to expire in November 2003.
"It is important that we maintain our commitment to help countries with good policies to become more resilient to crisis" it says.
"In response to the request of the International Monetary and Financial Committee (IMFC), the fund's current efforts on crisis resolution focus on promoting the inclusion of collective action clauses in international sovereign bonds in jurisdiction where they are not yet the market standard", it said. Bureau Report