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    Draft Resolution (Saudi Arabia, Usa, Japan)

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    Aishwarya Potdar
    This draft resolution from the International Monetary Fund's committee discusses recommendations for central banks and countries to minimize the negative effects of recessions. It calls on the IMF to [1] monitor loans by central banks to prevent excessive debt, [2] strengthen credit criteria and collateral requirements, and [3] encourage stress testing and capital planning. It also urges countries to [4] increase free trade, exports, and foreign direct investment to maintain liquidity during downturns. Finally, the resolution recommends several specific policies for central banks, such as adjusting reserve requirements and promoting fiscal stimulus and job training.

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    Draft Resolution (Saudi Arabia, Usa, Japan)

    Uploaded by

    Aishwarya Potdar
    42 views2 pages
    This draft resolution from the International Monetary Fund's committee discusses recommendations for central banks and countries to minimize the negative effects of recessions. It calls on the IMF to [1] monitor loans by central banks to prevent excessive debt, [2] strengthen credit criteria and collateral requirements, and [3] encourage stress testing and capital planning. It also urges countries to [4] increase free trade, exports, and foreign direct investment to maintain liquidity during downturns. Finally, the resolution recommends several specific policies for central banks, such as adjusting reserve requirements and promoting fiscal stimulus and job training.

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    This draft resolution from the International Monetary Fund's committee discusses recommendations for central banks and countries to minimize the negative effects of recessions. It calls on the IMF to [1] monitor loans by central banks to prevent excessive debt, [2] strengthen credit criteria and collateral requirements, and [3] encourage stress testing and capital planning. It also urges countries to [4] increase free trade, exports, and foreign direct investment to maintain liquidity during downturns. Finally, the resolution recommends several specific policies for central banks, such as adjusting reserve requirements and promoting fiscal stimulus and job training.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    42 views2 pages

    Draft Resolution (Saudi Arabia, Usa, Japan)

    Uploaded by

    Aishwarya Potdar
    This draft resolution from the International Monetary Fund's committee discusses recommendations for central banks and countries to minimize the negative effects of recessions. It calls on the IMF to [1] monitor loans by central banks to prevent excessive debt, [2] strengthen credit criteria and collateral requirements, and [3] encourage stress testing and capital planning. It also urges countries to [4] increase free trade, exports, and foreign direct investment to maintain liquidity during downturns. Finally, the resolution recommends several specific policies for central banks, such as adjusting reserve requirements and promoting fiscal stimulus and job training.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    DRAFT RESOLUTION 5.

    24
    COMMITTEE: INTERNATIONAL MONETARY FUND

    AGENDA: REVIEWING BANK POLICIES TO MINIMIZE NEGATIVE EFFECT OF


    RECESSIONS

    AUTHORS: SAUDI ARABIA, JAPAN, USA

    SIGNATORIES: SOUTH AFRICA, BANGLADESH, PRC, DOMINICAN REPUBLIC,


    AFGHANISTAN, CENTRAL AFRICA, UAE, JAPAN, CAMBODIA, USA,
    PHILLIPINES, REPUBLIC OF KOREA, AUSTRALIA, ZIMBABWE

    The International monetary fund

    Reaffirming IMF charter, purposes, clause V): ‘To give confidence to members by
    making the general resources of the fund temporarily available to them under adequate
    safeguards, thus providing them with opportunity to correct maladjustments in their
    balance of payments without resorting to measures destructive of national or international
    prosperity’

    Stimulating Policymakers to act together. They must reclaim the spirit of 2008, or the
    spirit of 1944. The Wilsonian spirit- the belief that the whole is greater than the sum of its
    parts.

    Expressing deep concern over the future of countries like Zimbabwe who are deeply in
    debt and are most affected by the great recession.

    Encouraging not just conditional loans to reduce debt but also higher focus of fiscal
    policies and free trade to increase liquidity globally.

    Stressing the fact that the IMF has forecasted significant financial obstacles and
    increasing risk of recession, the paper:

    1. Calls for the IMF to regularly monitor and restrict the number of loans lent by the
    central bank to each country and intervene if a significant increase in debt is
    foreseen
    2. Calls for IMF to strengthen the ‘credibility for credit criteria’ and the increase the
    amount of collateral
    3. Request the IMF to encourage ICAAP procedures (Stress testing, scenario analysis
    and capital planning)
    4. Requests countries to indulge in greater free trade to reduce- emerging markets
    falling victim to external instability, countries facing emergency or transition
    needs, and vulnerable low-income members.
    5. Strengthen the surveillance capabilities to help identify the risks, but also the
    opportunities arising from the interconnectedness between economies.
    6. Urges the governments to focus on increasing exports and encouraging FDIs, to
    ensure continuous injection of revenue, which would retain liquidity during a
    recession
    7. Encourages IMF to increase the minimum CRR held by each bank
    8. Urges IMF to indulge further into in-depth diagnoses of banks’ balance sheets and
    follow-on restructuring (removal of bad loans and other assets devalued by the
    crisis)
    9. Urges the IMF to limit government bailouts by providing greater capital and
    liquidity buffers and better cost-sharing arrangements with creditors in case of
    distress
    10. Requests IMF to implement extensive liquidity support (5 percent of deposits and
    liabilities to non-residents)
    11. Calls for the IMF to form regulations to set the maximum and the minimum
    amount of liquid assets that can be held by a central bank.
    12. Calls for the IMF to make it compulsory current assets should be stored by the
    respective central bank in the form of reserves
    13. Implementation of well-targeted prudential policies (micro and macro prudential
    regulations and supervision)
    14. Encourage countries to increase investments in research and development, which
    would increase product advantage in the coming years
    15. Encourages the reduction of cash reserve Ratio during high interest rates
    16. Endorses the reduction of statutory liquidity ratio
    17. Encourages states to subsidize small businesses with an emphasis on specialisation
    18. Recommends the trimming of repurchase ratio
    19. Urges countries with weak post – recession to practice expansionary fiscal policy
    in order to build their economies.
    20. Fixing margin requirements, implementing credit rationing
    21. Supports the elimination of trade barriers and decrease in tariffs for developing
    economies during recession as this increases their standard of living.
    22. Calls up on other Nations to synchronize tax system in order to cut overall taxation
    thereby encouraging investment and saving.
    23. Issuance of Negotiable certificates of deposit in order to curb the money supply
    and avoid inflation as well as recession.
    24. Encourages more investment in human capital, such as work experience of labour
    force, leading to higher production and earnings.

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