IMF Moves to Prevent Shortages

October 4, 1999

4 October 1999

The following article is excerpted from "ITAA's Year 2000 Outlook", volume 4, no. 33, October 1, 1999.

International Monetary Fund Moves to Prevent Shortages

The International Monetary Fund (IMF) has created a special emergency fund to cover any balance of payment problems that could occur as a result of Y2K transition problems.

The fund, which goes into effect October 15, 1999, will allow IMF-member nations to access as much as half of their borrowing limit for a six-month period. The fund expires March 31, 2000.

Michael Camdessus, managing director of the IFM, described the fund as an extra-added precaution.... While there is no reason to believe that there will be widespread Y2K problems or balance of payments problems, "there are uncertainties, and the potential consequence for international trade and growth of possible interruptions to production and shipments are significant," Camdessus added. "Equally importation is the potential for temporary interruptions to international capital flows."...


Topic(s): 
Canadian Economy & Politics
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