Rubin defends Asian bailouts, seeks IMF boost<\/p>\n
WASHINGTON (Reuters): The Clinton administration on Sunday
\ndefended its role in multibillion-dollar bailouts for Asia's
\nembattled economies and said it expected Congress to boost IMF
\nfunding to cope with financial catastrophes.<\/p>\n
\"It is extremely important that the United States provide the
\nkind of leadership that we are -- important because our economic
\ninterests are so much at stake,\" U.S. Treasury Secretary Robert
\nRubin told CBS's \"Face the Nation\" program.<\/p>\n
A financial crisis has roiled markets throughout Asia and in
\nmuch of the rest of the world. Three of the hardest-hit countries
\n-- Indonesia, Thailand and South Korea -- were forced to seek
\nmultibillion-dollar bailout loans from the International Monetary
\nFund (IMF).<\/p>\n
The United States and other rich countries have agreed to
\ncontribute billions of dollars to support the IMF-led bailouts.<\/p>\n
But the Clinton administration's decision to join the rescue
\neffort has drawn heavy fire from many U.S. lawmakers.<\/p>\n
Some Republicans say American taxpayers should not bail out
\nother countries responsible for their own financial crises.<\/p>\n
They also accuse the Clinton administration of skirting
\nCongress by using money in a special currency exchange fund. It
\nfalls under the exclusive control of Rubin, with President Bill
\nClinton's approval, so that it can be tapped without requesting
\npermission from Congress.<\/p>\n
Although Rubin said the market turmoil in Asia would not
\nderail the U.S. economy, he insisted that it was crucial that the
\nUnited States play its part and \"provide leadership\" to contain
\nfinancial crises overseas.<\/p>\n
\"Our economic well-being is inevitably and inextricably going
\nto be very much affected by well-being of nations around the
\nworld,\" Rubin said on CNN's \"Late Edition\".<\/p>\n
\"That's why we are so deeply involved in working with the
\ninternational community to try to reestablish financial stability
\nin South Korea, and try to limit the contagion and the spreading
\nof these problems to other emerging and developing countries.\"<\/p>\n
Rubin said the Clinton administration would press Congress
\nwhen it reconvenes to approve legislation boosting IMF resources,
\nwhich have been drained by loans in Asia.<\/p>\n
Analysts expect a bitter struggle in Congress over the
\nlegislation, but Rubin told CNN it was his \"hope and expectation\"
\nthat Congress would approve the IMF increases.<\/p>\n
Pending before Congress is legislation that would make an
\nextra $3.5 billion available to the IMF for an emergency lending
\nfacility, as well as around $15 billion to cover the U.S. share
\nof a quota increase to replenish funds approved by the IMF board
\nin September.<\/p>\n
\"We've had very constructive discussions over the recess with
\nthe leaders in Congress, chairmen of the various committees and
\nothers,\" Rubin said.<\/p>\n
He said these talks focused on the \"enormous interest that our
\ncountry has -- our economic interest, our national security
\ninterests -- in having a strong IMF that can help put in place
\nrigorous reform programs and also provide the funding needed to
\nget through difficult periods in these emerging countries.\"<\/p>",
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"sponsor": "Okusi Associates",
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