Federal Council has favourable view on objectives and activities of International Monetary Fund

Bern, 25.06.2014 - During its meeting today, the Federal Council adopted the report entitled "Objectives and activities of the International Monetary Fund (IMF)". The Federal Council considers the IMF to be crucial for maintaining a stable international financial and monetary system. This is also in the interests of Switzerland.

With the report, the Federal Council has responded to the Green Group's postulate entitled "What added value is created by Swiss contributions to the IMF?", which the National Council referred in 2013. The report uses internal and external studies, as well as case studies, to show how the IMF's monitoring, lending and technical support activities contribute to the achievement of the objectives set out in its mandate. In particular, the development of the economic and social indicators of countries with and without programmes is compared.

The report emphasises that the IMF allows for broadly-based cooperation in all international financial and monetary matters that are important. The IMF has a wealth of experience in monitoring the economic policies of its member states and plays a key role in the early identification of risks. Its lending gives member states that have balance of payments problems the necessary leeway to make adjustments. It also helps contain crises. The administrative capacities of predominantly low-income countries are boosted with technical support and training. This paves the way for long-term growth in these countries.

As a dynamic and open economy with an internationally oriented financial centre and its own currency, Switzerland has a major interest in an international financial and monetary system that is stable. The Federal Council believes that the importance of the IMF's role has thus increased further since Switzerland joined, especially since relatively sound countries' vulnerability to crises has also increased. By having a seat on the Executive Board, Switzerland can effectively put across its views on financial and monetary matters at the international level. Moreover, by actively participating in the Executive Board, it can make a significant contribution to making the IMF's toolkit more effective.

Address for enquiries

Anne Césard, Communications, State Secretariat for International Financial Matters SIF
Tel. +41 58 462 62 91, anne.cesard@sif.admin.ch