MercoPress. South Atlantic News Agency

“Redefining IMF”, the main challenge

International Monetary Fund new Managing Director Rodrigo Rato formally took office this Monday in Washington admitting he has one great challenge ahead and that is the redefinition of the multilateral credit organization role in the world's globalized economy

The former Spanish vice-president and former Minister of Economy had a first meeting with the IMF administration council and his three closets advisors and collaborators to assess and discuss the main problems he will be facing.

"Currently there are many countries requesting we redefine the role of our institution", said Mr. Rato adding that "this main challenge" will force all international institutions "to jointly arbitrate, each following its charter responsibilities, a truly real path to reduce poverty in the world".

"The IMF plays a leading role in fighting poverty because without macroeconomic stability there's no growth, and with no growth there's no way to end poverty".

Mr. Rato specifically mentioned Latinamerica which "must be capable of developing its potential, something she hasn't been able to accomplish for the last twenty years".

As to his first day in office the incoming IMF Managing Director admitted he will have to adopt decisions regarding certain issues, "quiet immediately", among which the coming mission to Argentina to assess the performance of the program agreed between IMF and the current Argentine administration.

Further on Mr. Rato said he was not particularly concerned about the world's economy health which has been growing "steadily and solidly", although there could be some "storm clouds" in the future, which IMF has identified as the threatening and burgeoning United States budget deficit and in Asia where a consolidation of the quick expansion of recent years is needed.

IMF has forecasted "correctly in many occasions", and "when it hasn't it has admitted it, and admits it" said Mr. Rato.

Finally the new IMF Managing Director said the new job was "very significant personally, like starting a new life", and "a great honour for my country. It's a great opportunity and I feel honoured".

Mr. Rato is the first Spaniard to preside over the IMF since its creation in 1944.