WASHINGTON — The International Monetary Fund's managing director said Monday that use of the fund's resources may be larger than expected to help member nations with their debt problems.
"Given the weak prospects for an early return to spontaneous market access for many heavily indebted countries, the fund's direct financial involvement in the implementation of the debt strategy has to remain important," Michel Camdessus said in an address prepared for delivery to the United Nations General Assembly in New York.
"Indeed, use of the fund's resources in the period ahead may have to be larger than contemplated earlier," he said.
The IMF released a text of his speech in Washington.
Camdessus said the IMF would need financial support from other parties in addition to its own resources.
"While the fund needs to continue to respond flexibly and imaginatively to the problems of its members, it cannot do so without the strong commitment and financial support of other parties to the debt strategy," Camdessus said.
"It is not reasonable to expect the fund to compensate for shortfalls in financing from other sources. We stand ready to complement such financing, but we cannot replace it. All, in short, must play their part, do more and do it better."