MercoPress. South Atlantic News Agency

UK calls for a refocusing of IMF

The International Monetary Fund needs to refocus its goals in order to reflect the changing world economy, said British Chancellor of the Exchequer Gordon Brown.

"I suggest the IMF should be updated to reflect the global economy" indicated Brown, who currently holds the chair of the International Monetary and Financial Committee, the IMF main steering group.

"Just as we made the Bank of England independent in Britain, Britain will make proposals for the IMF to sponsor independent and transparent surveillance of national fiscal and monetary policies".

His comments echo Bank of England Governor Mervyn King who said the IMF must urgently reassess its purpose and needs more focus, independence and legitimacy, if it is not to pass into obscurity.

IMF Managing Director Rodrigo Rato acknowledged earlier this month that his organization needed to play a bigger economic surveillance role following a number of suggestions by member countries, including the United States.

Speaking to a financial markets conference, Brown also said he was listening carefully to calls from UK bond dealers and investors for more long-dated debt.

"We are considering your recommendations and your suggestions carefully" he told the conference.

Strong demand for long-dated government bonds, in particular from pension funds keen to match long-term liabilities with safe long-dated assets, has pushed yields down to touch record lows this year and sucked liquidity out of the market.

Dealers and investors have thus urged the government to skew issuance in the next fiscal year towards the long end of the gilt curve.