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. Last Updated: 07/27/2016

U.S. Ignores IMF

WASHINGTON -- The head of a U.S. congressional advisory committee on reforming the International Monetary Fund and the World Bank said the response of President Bill Clinton's administration to its proposals was disappointing. Economist Allan Meltzer of Carnegie Mellon University, who headed the committee, said U.S. Treasury officials did not agree with many of the panel's conclusions.

It recommended limiting the IMF to short-term emergency loans in financial crises and getting the World Bank to focus on development grants to poor countries instead of making loans.

Testifying before the Senate Foreign Relations Committee on Tuesday, Meltzer said he was "disappointed and disheartened by the Treasury's response," particularly to proposals for the IMF to lend only to pre-qualified countries no matter what kind of financial crisis the world was facing.