The IMF is beginning to examine policy options for how governments can recover public money used to support banks and other financial institutions during the economic crisis. Some form of financial sector tax is one of the options under examination.
The International Monetary Fund is launching a consultative process as it begins to examine policy options for how governments can recover public money used to support banks and other financial institutions during the economic crisis. Some form of financial sector tax is one of the options under examination.
At their Summit held in September, the Group of Twenty industrial and emerging market countries (G20) requested that the IMF analyze policy options “for how the financial sector could make a fair and substantial contribution toward paying for any burdens associated with government interventions” to repair the system.
IMF First Deputy Managing Director John Lipsky, who is heading the IMF group preparing the report, said recently that “an important aspect of our work as we move forward will be to consult and seek the views of a broad set of observers, who will bring varied perspectives and valuable insights to the process.”
The IMF plans a number of steps to ensure a comprehensive consultation process is put in place. The process will involve IMF staff interaction with tax experts, academics, labour unions, and civil society organisations. In addition, IMF Managing Director Dominique Strauss-Kahn and Mr. Lipsky will hold meetings with senior officials of civil society organizations (CSOs).
Deadline for comments is 1 February 2010
© International Monetary Fund
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