The Institute of International Finance (IIF) on Monday called for immediate actions to put in place pledged increased resources for the International Monetary Fund (IMF) and multilateral development banks (MDBs) to help bring about the end of the current global economic and financial crisis.
"An immediate issue is how to quickly put into place the resources that have been committed by the G-20 to the IMF and the multilateral developments banks -- especially when legislative action at the national level is necessary to secure the funds," IIF Managing Director Charles Dallara noted in a letter.
The letter was written to the ministers of finance and the central bank governors who will meet in Washington on April 25-26,2009, when the IMF and World Bank hold their annual spring meetings.
Dallara stressed that follow-through on pledges from the Group of 20 developed and developing countries at their London summit at the beginning of the month was critical to confronting the crisis.
"Time and leadership are of the essence. Only with funds in hand can the IMF provide timely and meaningful assistance to emerging economies that have been severely affected by a crisis originating elsewhere," the letter said.
At their London summit, the G-20 has agreed on a 1.1-trillion-dollar deal to fight the crisis, including a huge infusion of funds for the IMF.
The IIF, the global association of financial services firms with over 360 member institutions, also said that it is urgent that the IMF galvanize the governments of leading economies to advance coordinated fiscal, monetary, and financial markets stabilization policies.
Meanwhile, the IIF called for the IMF to improve its multilateral surveillance of the global financial system and launch a framework for regular and extensive interaction with private-sector market participants that would be fed back into economies.
Such a framework was "profoundly lacking over the past decade and it has cost us dearly," Dallara said.
The IIF's proposals included advocating an enhanced role for the World Bank Group, highlighting the work of the International Finance Corporation, as well as that of other MDBs, in co-financing with private-sector investors, and expanding programs in trade finance, bank recapitalization and infrastructure financing.
The IMF and the World Bank will hold their annual spring meetings on April 25-26 in Washington.