The International Monetary Fund said that large financing packages, more flexible policy advice, and fewer conditions in its loans to emerging-market countries have helped avoid catastrophic damage to their economies during the current financial crisis.
In an internal review of its lending to 15 emerging economies since the global financial upheaval began last year -- most of them in Eastern and Central Europe -- the IMF said its responses have not caused sharp spikes in interest and exchange rates, and runs on banks. One reason for this was swifter disbursement of IMF funds to sectors hardest hit by the crisis and an emphasis by the fund on protecting the financial sector from the global credit squeeze.
The review looked at IMF programs in countries such as Hungary, Iceland, Ukraine, Latvia, Romania, Serbia, Belarus, Bosnia, Georgia and also to Costa Rica, El Salvador and Guatemala and concluded they have been successful. (Reuters)