As a result, a large majority of countries failed to meet the budgetary balances targeted in the stability programmes for 2001. By the same token, most countries rightly refrained from introducing a discretionary fiscal relaxation in response to the economic slowdown. Moreover, countries with remaining fiscal imbalances reaffirmed their commitment to attaining safe budgetary positions by 2003 or 2004.
The financial resources of the IMF were significantly enhanced, reassuring its members that the Fund has enough ammunition to fight any crisis. I expect that the money raised under the bilateral loan agreements and the IMF notes programme will be folded into the new and expanded NAB. The Fund’s legitimacy follows from its almost universal membership combined with adequate governance arrangements.