[DEBATE] : (Fwd) IMF structurally adjusts
pbond at mail.ngo.za
Mon Dec 10 03:49:05 GMT 2007
IMF chief eyes major job cuts
Washington, United States
07 December 2007 01:54
The new head of the International Monetary Fund (IMF) plans to slash as
much as 15% of the organisation's staff in its first significant job
cuts, the Wall Street Journal reported on Friday.
Dominique Strauss-Kahn's plans are aimed at reducing deficits and
maintaining the relevance of the group "at a time when developing
nations are growing rapidly, often have fat reserves and have little
need for IMF aid", the report said.
The cutbacks are also "part of his strategy to win United States and
European backing for a plan to sell part of the IMF's gold hoard and
invest in income-producing assets, to put the IMF on a sounder financial
footing", the report said.
"All this is possible only if ... I have the commitment by different
governments" to boost IMF income, Strauss-Kahn told the Journal in his
first extensive interview since taking office on November 1.
"If not, nothing is done."
The straight-talking Strauss-Kahn (58) said: "This institution works
well, with dedicated people and very high-level staff, but it is a
factory to produce paper."
He said the fund faced an annual deficit of $400-million by about 2010,
assuming loan demand does not surge. He said he planned to reduce the
deficit by one-fourth, by cutting the IMF staff of 2 634 by 300 to 400
Early departure deals would not likely be sufficient, he said, so
lay-offs would be needed. IMF job cuts historically have been tiny -- 20
job cuts in 9180 and then 86 in 1986, the Journal said. -- Sapa-AFP
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