The International Monetary Fund has said that it is ready to provide support for South Asian nations that have been hit by the tidal wave. The International Monetary Fund has said that it is ready to provide support for South Asian nations that have been hit by the tidal wave. The IMF does not support direct fiscal support to governments as the World Bank does, but provides balance of payments support to boost Central Bank reserves.
“The horrible events that have unfolded this weekend in South Asia cannot possibly be addressed through words alone – particularly for those nations most in need of humanitarian aid,” Rodrigo de Rato, Managing Director of the International Monetary Fund said in a statement.
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“As we approach the New Year and try to come to grips with the disaster in South Asia, let me first extend my deepest condolences to the people and governments of Bangladesh, India, Indonesia, Malaysia, Maldives, Sri Lanka and Thailand who have been so directly affected by the loss of lives.”
Most nations affected including India and Thailand have record foreign exchange reserves, but Sri Lanka’s reserves have fallen sharply in 20