|
Finance
|
2000-04-06 00:26:00-04
|
IMF to increase Loan Safeguards
|
|
New auditing requirements in response to allegations that Russia and Ukraine deceived agency to obtain new funding
|
In response to allegations that the International Monetary Fund was deceived by central banks in Russia and Ukraine in securing new financing, Acting IMF Managing Director Stanley Fischer has announced new auditing requirements for central banks that would guarantee that IMF loans were properly used. In 1999, the IMF found out that it had been deceived by the Russian central bank about the size of its foreign exchange reserves, some of which had moved off 'shore through a subsidiary. A similar motif was discovered in operation at the National Bank of Ukraine. The new requirement is that countries seeking loans will have to agree to publish annual financial statements of their central banks that have been reviewed by independent auditors. In addition, Fischer said the IMF had a full plate of reforms which would be discussed when the annual spring meetings with the World Bank occur in Washington on April 16-17. The meetings expect to see the presence of many of the demonstrators that disrupted the meeting of the World Trade Organization in Seattle in December. Fischer expressed confidence that local authorities would be able to deal with the situation.
|
