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Oxfam Calls for Reforms of IMF Loan Conditions

Oxfam International has voiced its concerns about the conditions imposed by the International Monetary Fund on the loans it provides to low-income countries, and urged IMF to reform its conditions if it does not want to be seen as “punishing the world’s poorest citizens.”



Oxfam International has voiced its concerns about the conditions imposed by the International Monetary Fund on the loans it provides to low-income countries, and urged IMF to reform its conditions if it does not want to be seen as “punishing the world’s poorest citizens.”





In its submission to a public consultation that is part of IMF’s 2011 Review of Conditionality and the Design of Fund-Support Programs on Thursday, Oxfam said that it believes that in an increasingly resource-constrained world, food and fuel prices will continue to rise and hit the poor hardest.





Oxfam warned that If the IMF does not reform its conditionality much more fundamentally, it will increasingly be seen as responsible for punishing the world’s poorest citizens.





Oxfam recommended that IMF should introduce more progressive taxation measures designed to increase a recipient country’s tax revenues and accelerating the introduction of social protection measures in low-income countries.





Oxfam is also urging IMF to “increase fiscal space for spending in low income countries, by allowing fiscal deficits to remain in the 3 to 5 percent of gross domestic product and inflation to remain in the 5 to 10 percent range.





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