IMF steps in with global aid

By Lesley Wroughton

WASHINGTON (Reuters) - The IMF has finally stepped into the limelight with three high-profile rescues in three days, passing the first test of whether it can resume a leadership role as emerging economies pay the price for a credit crisis spawned by the world's richest nations.

However, the International Monetary Fund will have no time to rest on its laurels as it faces an even tougher challenge of quickly cobbling together a way to get hard currency into the hands of countries squeezed by financial market turmoil.

The IMF's board is expected to consider a liquidity swap fund on Friday. Credit strains are becoming increasingly severe in many emerging economies and the swap line would provide a group of pre-approved advanced emerging economies with short-term financing carrying few or no conditions.

"I think it's good that the IMF is doing some creative thinking and trying to figure out how it can potentially add tools to its toolbox during a financial crisis," Clay Lowery, assistant U.S. Treasury secretary for international affairs, told Reuters.

"They're trying to make sure they do this effectively and constructively and very efficiently so I would imagine that, from a timing perspective, people are going to be having to think about this happening fairly soon."

While its economic forecasts and warnings have proved quite accurate over the past 18 months, the IMF has been criticized for failing to sound the alarm on lax oversight and reckless lending, particularly in its host country, the United States.

Many developing countries have complained that the IMF did not publicly reprimand rich countries for the sort of poor oversight that would probably have drawn a stern rebuke, had it taken place in an emerging market.

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