WASHINGTON — The International Monetary Fund approved a loan program Tuesday to assist developing countries that may suffer economic upheaval due to trade liberalization such as the removal of apparel and textile quotas in 2005.

The IMF executive board approved the loan program, which would make available about $1.45 billion in loans to poor countries who qualify.

The money would be made available to the central banks of countries and would allow the countries “to have a less-harsh adjustment to the reductions in exports” by using the money to strengthen international reserves of countries that face shortfalls in their balance of payments as a result of trade liberalization, according to Hans Peter Lankes, chief of the IMF’s trade policy division.

In a report, IMF singled out Egypt, Mexico, Indonesia, Thailand, Sri Lanka, Cambodia and Bangladesh as countries that have already seen a huge decrease in apparel and textile exports to the U.S.

To access this article, click here to subscribe or to log in.

load comments
blog comments powered by Disqus