WEF 2015: Low oil prices can help cut energy subsidies worth $2 trillion, says IMF

DAVOS: With oil prices touching "rock bottom", there is an opportunity for countries to cut energy subsidies worth USD 2 trillion, International Monetary Fund's chief Christine Lagarde said today.

The IMF Managing Director said there is a window of opportunity to trim energy subsidies as oil prices are low.

"Now is the time to remove the world over the subsidies to use of energy," she said while speaking at a session at the World Economic Forum (WEF) annual meet.

With the price of oil rock-bottom, now is the perfect opportunity to cut USD 2 trillion worth energy subsidies across the world, she said.

"You have dormant there USD 2 trillion (worth energy subsidies)...," Lagarde said and added that this amount can be invested equally in job creation and education, with a special focus on women.

"Other option you can also consider as well as subsidy removal is financial inclusion... and a lot of corruption can actually disappear," she noted.

She was participating in a debate examining global economic growth, inequality and the role of technology.