October 13, 2012 - 12:15 AMT
PanARMENIAN.Net - Global financial ministers called Saturday, Oct 13, for quick and effective action to safeguard faltering economic growth and rebuild shaken confidence as they ended an annual meeting of the International Monetary Fund.
According to The Associated Press, the IMF's International Monetary and Financial Committee also urged emerging economies to adapt their own policies to help counter slowing growth in Europe and the United States.
The IMFC said decisive action was needed to "break negative feedback loops and restore the global economy to a path of strong, sustainable and balanced growth."
The annual meeting of the IMF and World Bank, convened in Tokyo this year, has highlighted frustrations among many countries over drag on growth from the lingering debt crisis in Europe, and alarm over a possible blow to the world's largest economy if the U.S. fails to resolve an impasse over its budget deficit.
"Global growth has decelerated and substantial uncertainties and downside risks remain," the IMFC said in a communique. It exhorted advanced economies to carry through with needed structural reforms and "credible fiscal plans."
While most of the attention during the meeting was focused on the crises facing the biggest economies, the IMF and World Bank — whose mission is to fight poverty — have also emphasized the need to help protect the poor from the spillover of slowdowns in richer nations.
The IMF announced it would devote $1.1 billion in funds from windfall sales of gold to help fortify funds for low-cost loans for low-income countries.
The overwhelming emphasis of the Tokyo gathering has been on coddling fragile growth around the globe, the AP says.
At Saturday's meeting of the IMFC, which advises the IMF and monitors the world financial system, officials from developing and emerging economies urged the U.S. and European nations to prevent malaise in their regions from slowing global growth.
To fortify a "safety net" for crises while supporting improvements to make farming more efficient and sustainable, ministers also have pledged new funds for the Global Agriculture and Food Security Program, a trust fund set up in 2010.