IMF progs helping emerging mkts tackle financial crisis

WASHINGTON The International Monetary Fund has said the agency's various efforts, including large and "timely financing", have helped many of the emerging markets tackle the financial turmoil.

Asserting that many nations, which received IMF funds, have generally avoided banking crises, the multilateral lending agency said fiscal policy in many instances was adjusted in accordance with evolving conditions.

"The Fund-supported programmes are delivering the kind of policy response and financing needed to help cushion the blow from the worst crisis since the 1930s," the agency said in its 'Review of Crisis Programmes' covering 15 countries. In recent months, IMF has sanctioned billions of dollars to many countries to boost their efforts to tide over the financial storm.

"Serious challenges remain, especially restoring sustained growth in output and employment, but there are encouraging signs of stabilisation," IMF's Managing Director Dominique Strauss-Khan said.

The report said the "general avoidance of banking crises in programme countries thus far is remarkable," especially as many countries in Central and Eastern Europe, slipped into such a turmoil due to an "externally-financed credit boom".