G-8 officials to seek IMF stimulus withdrawal

Associated Press ,  Lecce, Italy   |  Sat, 06/13/2009 5:32 PM  |  Business

Financial officials from the Group of Eight industrialized nations are expected to agree Saturday to ask the International Monetary Fund to investigate ways to unwind hefty stimulus packages amid early signs of a global economic recovery.

Finance ministers are divided on the importance of so-called exit strategies, with the United States, Britain and France urging members to stay committed to expansive monetary and fiscal packages while several European countries and Canada want unwinding those positions to be a priority of the talks here.

A source close to the discussions, who was not authorised to speak while talks continued, said that ministers would compromise by asking the IMF to conduct a study on how the economic and financial stimulus policies should be rolled back.

French Finance Minister Christine Lagarde told reporters Friday that it was premature to move ahead on exit strategies when nations were still in the process of ensuring that the stimulus packages were working. Others were more supportive of the plans.

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