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The IMF will lend $ 17 billion by 2014 poor countries, mostly African countries but also countries of Central America or Asia.
In times of crisis, exceptional, extraordinary measures: This assistance will take the form of loans. A first in the history of the IMF. A loan that will be painless for the countries that contract. For countries that are already engaged in financial agreements with the IMF, the interests of current loans will be suspended altogether. One way to encourage states to reallocate the amount that was dedicated to repayment of the debt to target expenditure on education or health.
Unemployment should continue to increase in 2010
The boss of the IMF commented on the economic forecasts published by the international institution in early July: there are signs of recovery in the global economy, but caution still needed. The rebound of the U.S. economy will the first half of 2010. And later still in Europe.
For Dominique Strauss-Kahn, the risk is that States cease all efforts to support the activity, arguing that signs of recovery are visible for several months. The IMF’s record is clear: “We are not after the crisis, then, do not pack too fast.”
Because it will wait one more year to see an expected drop in unemployment. Resumption of the activity does not necessarily mean recovery in the labor market in the wake. Unemployment remains very high in 2010. Worse, it should continue to increase in 2010.