MercoPress. South Atlantic News Agency

World economy prospects still good, says IMF

IMF Managing Director R. Rato

Ministers responsible for the economy and finance, and governors and administrators of central banks from Africa and the International Monetary Fund officials are in Maputo Monday discussing the commitment of the Breton Woods institution towards the continent.

IMF Managing Director Rodrigo Rato told reporters in Maputo at the one-day meeting that the response of central banks to provide short-term liquidity to markets was appropriate. And while the credit crisis that has risen in America may have some impact, prospects for the world economy are good, he said. "I think that the response of central banks to provide liquidity, short-term liquidity to the markets is an appropriate one to overcome the lack of liquidity among participants," Rato told reporters in the Mozambican capital Maputo. "As we understand, there will be some impact on growth. But we still believe that prospects for the world economy are good," he added. The other main focus of the gathering will be the issue of quota, voice and representation of African countries in the Breton Woods institution. The meeting is chaired by Mozambican finance minister, Manuel Chang, in his role as the chair of the African Caucus. This body was set up in 2006 to help facilitate consultations between the African ministers responsible for economic and financial affairs and the IMF management. The last meeting of this kind was held in Washington, D.C., in April. Chang is optimistic that the IMF will do its utmost best to restore the 11.2 per cent African voting power which now stands at 2 per cent