Strengthen IMF to Halt Global Crisis, Clinton Says

President Clinton said Friday that the United States must take more aggressive steps to contain the global economic crisis.

He prescribed a three-part plan that includes full funding for the International Monetary Fund-and indeed expansion of it.

"Today, the world faces the most serious financial challenge in 50 years," he told reporters at the White House. "Our future prosperity depends on upon whether we can work with others to restore confidence, to manage change and to stabilize the financial system."

Amplifying remarks he made last month in New York, he suggested the World Bank and other international development institutions create emergency loan programs that provide short-term humanitarian aid, yet encourage financial reform in troubled countries. Furthermore, he called on these institutions to create loan guarantee and other programs to prompt private-sector lending to emerging markets in need of cash.

The President also recommended the creation of an emergency financing arm of the IMF that would help save vulnerable countries from the spreading world financial crisis. And he said Congress should approve $18 billion for the IMF in order to protect the interests of farmers and American businesses.

He also called for the creation of short-term credit facilities to encourage continued exports and overseas investment by U.S. businesses.

At a news conference later, Treasury Secretary Robert E. Rubin said finance ministers and central bankers from the G-7 and key developing countries would meet here Monday to discuss the president's proposals and additional long-term world economic reforms.