Accessing the markets after crises

• Pages: 344

Page 344

On September 19, the IMF's Executive Board explored the determinants and prospects for the pace of capital market access for countries emerging from financial crises. They found that "past experience suggests that countries that lose market access as a result of adverse developments in global financial markets, or minor spillover from crises elsewhere, generally regain market access quickly as the effects of such developments pass." But some Directors noted that "in view of the time lags involved, interim financing by the IMF and other IFIs [international financial institutions] is an important element to help facilitate regaining market access, in particular, by ensuring temporary financing while corrective policies are being implemented."

The Directors agreed "that the adoption of credible corrective policies is the single most important...