2/7/2016

Oil nations face years of pain, says IMF chief Christine Lagarde - Telegraph

Oilnationsfaceyearsofpain,saysIMFchiefChristineLagarde
ChristineLagardesaysInternationalMonetaryFundstandsreadytohelpcountriesin
distress

ChristineLagardesaidtheIMFstoodreadytohelpstrugglingcountriescopewithareneweddropinoilpricesPhoto:
Alamy

BySzuPingChan
9:23PMGMT04Feb2016

Oilproducingnationsfaceyearsofpainaspricesremainlowerforlonger,themanagingdirectorof
theInternationalMonetaryFund(IMF)haswarned.
ChristineLagardesaidtheFundstoodreadytohelpstrugglingcountriessuchasAzerbaijanand
Nigeriacopewithareneweddropinoilprices,amidreportsthattheAfricannationhassought
supportfromtheWorldBank.
"Oilandmetalspriceshavefallenbyaroundtwothirdsfromtheirmostrecentpeaks,andarelikely
tostaylowforquitesometime,"shesaidinaspeechattheUniversityofMaryland."Asaresult,
manycommodityexportingemergingeconomiesareunderseverestress,andsomecurrencieshave
alreadyseenverylargedepreciations."
http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/12141428/Oil-nations-face-years-of-pain-says-IMF-chief-Christine-Lagarde.html

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2/7/2016

Oil nations face years of pain, says IMF chief Christine Lagarde - Telegraph

MsLagardecalledonpolicymakerstoboosttheglobal"safetynet"tocopewithfuturefinancial
shocks.
Themanagingdirectorcalledformorecooperationbetweencentralbanksaswellasbetter
planningforcountriestoaccesscreditintimesofstress.
InseparatecommentsonThursday,MsLagardepraisedAzerbaijanfortakingstepstoreassess
spendinganduseitsexchangerateasa"buffer".
However,shesaidNigeriawasstillwastingmoneyonsubsidiesandsuggestedthatthecountry's
woeswerebeingexacerbatedbythenaira'spegtotheUSdollar.

ChristineLagardespeaksattheUniversityofMarylandonThursdayPhoto:EPA

MsLagardealsosoughttocalmfearsaboutChina,asshesaidaslowdowningrowthwouldnot
leadtoa"hardlanding"fortheworld'ssecondlargesteconomy.
Shesaidthetransitiontowardsconsumptionfrominvestmentledgrowthwould"createspillover
effectsthroughtradeandlowerdemandforcommodities,andamplifiedbyfinancialmarkets",but
thatthiswouldleadtomoresustainablegrowth.

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/12141428/Oil-nations-face-years-of-pain-says-IMF-chief-Christine-Lagarde.html

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2/7/2016

Oil nations face years of pain, says IMF chief Christine Lagarde - Telegraph

MsLagarderepeatedtheIMF'scallforsubstantialdebtreliefforGreece,asshesuggestedthatthe
countrymayneedmorereliefifpensionreformsarenotdeemedsustainable.
AstensofthousandsofGreekstooktothestreetstoprotestagainstgovernmentpensionreforms
neededtomeetdemandsofinternationalcreditors,MsLagardesaidspendingonpensionsinthe
countryremainedwellabovetheEuropeanaverage,butaddedthatreformdemandshadtobe
realistic.
"IhavealwayssaidthattheGreekprogrammehastowalkontwolegs,"shesaid.
"Oneissignificantreformsandtheotherisdebtrelief,andwepersistinthatview.Ifthepension
reformcannotbeassignificantasneededitwill[need]moredebtreliefontheotherside.Butno
matterhowbigthedebtreliefis[wehavetomake]thepensionssystemsustainable."
MsLagardealsosaidtheperceptionthattheIMFwasactingina"draconian"or"terrible"wayon
reformswasunfair.
"Greecehasmadealotofsacrifices[austerity]shouldnotbeexcessivebutitneedstoaddup,"she
said."[Greece's]taxcollectionsystemneedstobeimprovedsorevenuescomeinandevasionis
stoppedanddebtrelieffromotherEuropeancountriesmustaccompanythisprocess.Wewantthe
programmetobeasuccess,butithastosucceedinreallife,notjustonpaper."

Howwemoderate
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http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/12141428/Oil-nations-face-years-of-pain-says-IMF-chief-Christine-Lagarde.html

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