Monday, April 27, 2009

US Treasury Secretary on increasing lending to the poor nations

The US Treasury Secretary was asked his opinions on what the World Bank and IMF must do during the global recession. Timothy Geithner's comments were recorded by Associated Press reporter Harry Dunphy.

The global economic crisis threatens to reverse gains in fighting poverty, so banks that provide aid to poor nations must embrace changes in their operations, Treasury Secretary Timothy Geithner said Sunday.

Those development banks are at the forefront of efforts to eradicate poverty and promote sustainable growth, he said the World Bank's policy-setting board.

"We cannot afford to lose time or lose ground," Geithner said.

At the same time, he said it was important for the banks to conduct their aid business in the open.

They must face reviews to ensure they have enough money and are promoting fundamental changes, Geithner said. He added that their resources must be used to "achieve the maximum impact on long-term development objectives, including addressing the needs of the poorest."

As the weekend meetings of the bank and the International Monetary Fund wrapped up, finance ministers said they are seeing signs the economy is stabilizing. But they said it will take until the middle of next year for the world to emerge from the worst recession in decades.

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