The global financial crisis is secondary for Africa, but may bring heavy consequences to the continent if it fails to take precautions, a senior official of the International Monetary Fund (IMF) warned on Wednesday.
"In Africa, the effects of the crisis are secondary, but not the minimum. This already takes the form of decline in oil prices and could further with a standstill of investments from foreign powers," said Mark Plant, deputy director in the IMF's Policy Development and Review Department.
Plant was addressing a conference on financial crisis being held in Brazzaville, capital of the Republic of Congo.
"Congo (the republic of Congo) like other countries should be prudent" in public spending and foreign exchange reserves in case of urgency, he warned, urging African countries to continue their economic reforms. "The crisis will be less disastrous for Africa, if it has a good budgetary plan," he added.
The IMF official also pledged to help Africa's banking system bottlenecked by its low level of commercial credits.
The IMF has decided to set up surveillance offices in Africa to contain the spread of financial crisis while promoting the development in the continent, according to the official.
In the Republic of Congo, Plant said, the IMF is to go on with its financial support under the Facility for Poverty Reduction and Growth, a program signed by some other African countries.
In accordance with the strategy outlined by the program, The Republic of Congo focuses on the fight for poverty alleviation, economic diversification and competitiveness, and reforms in its financial system.
|
| FAQ
