The International Monetary Fund (IMF) is going to enhance its collaboration with regional financing arrangements (RFAs) in order to strengthen the Global Financial Safety Net (GFSN) and ensure effective crisis mitigation.
"As the GFSN expanded and became more multi-layered, stronger collaboration between its various elements has become increasingly important to ensure timely and effective crisis mitigation," said the IMF in a statement on Monday.
"Improved collaboration between the Fund and the RFAs, including in co-financing, would significantly reduce the risk of contagion," the IMF said.
The IMF executive board discussed principles to guide its future collaboration with the RFAs on July 26, said the statement.
IMF executive directors supported the IMF to collaborate with the RFAs in areas such as capacity development, surveillance, and non-financial support and lending, according to the statement.
In 2016, the IMF conducted a test run of co-financing with the currency swap arrangement Chiang Mai Initiative Multilateralization, one of its efforts to explore ways to enhance its collaboration with the RFAs.
"As the GFSN expanded and became more multi-layered, stronger collaboration between its various elements has become increasingly important to ensure timely and effective crisis mitigation," said the IMF in a statement on Monday.
"Improved collaboration between the Fund and the RFAs, including in co-financing, would significantly reduce the risk of contagion," the IMF said.
The IMF executive board discussed principles to guide its future collaboration with the RFAs on July 26, said the statement.
IMF executive directors supported the IMF to collaborate with the RFAs in areas such as capacity development, surveillance, and non-financial support and lending, according to the statement.
In 2016, the IMF conducted a test run of co-financing with the currency swap arrangement Chiang Mai Initiative Multilateralization, one of its efforts to explore ways to enhance its collaboration with the RFAs.
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