IMF MD Sparks of debate

Posted by | March 17, 2005 | World | No Comments

IMF Managing Director is of the opinion that using of Foreign Reserve Fund for financing Infrastructure projects in a country might not be a good idea after all. This looks like one more log added to the already burning debate of financing the Indian infrastructure projects with the help of the foreign exchange reserve fund. The debate was supported by none other than Mr. Montek Singh Ahluwalia, who was already in the evaluation committee of IMF. Mr. Rodrigo de Rat MD of IMF is of the opinion that financing such projects through the reserve fund might lead to fiscal deficit and inturn be a cause of inflation in the country. Well one needs to see how the ministry and the RBI would take Mr. Rato’s suggestion.

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