NEW DELHI :
FINANCE Minister Nirmala SItharaman has said that a calibrated and balanced approach to deploying a mix of fiscal, monetary and structural measures by countries can help achieve their growth potential and asked the IMF to evolve a policy framework to assess the vulnerability of fragile economies to capital flows. In her intervention during International Monetary and Financial Committee (IMFC) Plenary Session in the ongoing Annual Meetings 2019 of the IMF and World Bank being held in Washington, US on Saturday, Sitharaman said, “At the National level, a calibrated and balanced approach to deploying a mix of fiscal, monetary and structural measures by countries can help achieve their growth potential, the Finance Minister added, according to a Finance Ministry statement.”
“International Monetary Fund (IMF) should provide solutions that are specific to important growth geographies to help alleviate the current conundrum. IMF should evolve a policy framework that would assess the vulnerability of economies to capital flows and that developing stronger surveillance mechanism with sharper diagnostic tools can mitigate or even prevent the adverse effects on fragile economies”, the Nirmala SItharaman said, according to a Finance Ministry statement.
On the 15th Round of the IMF’s General Review of the Quotas (15th GRQ) likely to conclude without a quota increase, the Finance Minister stated that work on the 16th Round should begin in right earnest and should have a tight timeframe. Sitharaman also attended International Monetary and Financial Committee (IMFC) Restricted Breakfast.
One case should not be used to generalise efficiency of IBC: Nirmala
By Lalit K Jha
FINANCE Minister Nirmala Sitharaman has said that uncertainty arising out of one case should not be generalised about the efficiency and effectiveness of Insolvency and Bankruptcy Code (IBC). Nirmala Sitharaman was responding to a question on a particular recent case which many allege reflects some major loopholes in the IBC. Her comments came amidst the alleged Rs 4,355 crore fraud at Punjab and Maharashtra Co-operative (PMC) Bank.
The alleged loan fraud at the bank came to light after the Reserve Bank of India found irregularities and imposed restrictions on the lender last month. “I don’t think we should escalate one case to reflect everything to do with IBC,” Sitharaman told reporters at a news conference here. “If ED attaches somebody’s property and as a result of which some uncertainty comes into the IBC process, it’s nothing first of all to say on the IBC itself,” Sitharaman said responding to a question on a recent case. “That’s not going to happen in every case when the company is going for a solution.
So I don’t think we should escalate one case to reflect everything to do with IBC,” Sitharaman said. The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy.