IMF Urged to Play 'Critical Role' in Financial Crisis

By THE ASSOCIATED PRESS

BEIJING— Asian and European leaders meeting in China's capital will demand a "critical role" for the International Monetary Fund in aiding countries hardest-hit by the global financial meltdown, according a draft statement seen by The Associated Press on Friday.

The IMF, along with other international financial institutions should act now to help stabilize struggling banks and plunging share prices, said the draft. The statement is to be issued at the end of the two-day Asia-Europe Meeting of 43 world leaders that opened in Beijing on Friday.

The gathering seeks to build consensus among them on handling the crisis ahead of a Nov. 15 meeting of the 20 largest economies in Washington D.C.

"Leaders agreed that the IMF should play a critical role in assisting countries seriously affected by the crisis, upon their request," the draft said.

If adopted, the statement would be among the strong calls yet for a leading role in the crisis for the Washington-based IMF.

Countries as disparate as Hungary, Ukraine, Iceland and Pakistan have already turned to the fund, known as the international lender of last resort, for helping bridging their liquidity crunches.

The draft statement says leaders agreed to "undertake effective and comprehensive reform of the international monetary and financial systems.

"They agreed to quickly take appropriate initiatives in this respect, in consultation with all stakeholders and the relevant international financial institution," the statement says.

In remarks Friday to the meeting's opening session, French President Nicolas Sarkozy said he hoped Asia would support Europe's proposals on redrawing the system of international capitalism at the Washington meeting.

"Europe is going to act in a united way, and we will submit proposals that we have developed together. Europe would like Asia to support our efforts and would like to make sure that on the 15th of November we can face the world together and say that the causes of this unprecedented crisis will never be able to happen again," Sarkozy said.