The International Monetary Fund said Saturday that a successful outcome to the Doha Round by the end of 2006 remains of critical importance for the global economic growth and poverty reduction.

"Serious challenges remain in reaching agreement at the WTO (World Trade Organization) ministerial meeting in Hong Kong in December," the IMF said in a communique released after a meeting of its International Monetary and Financial Committee.

The committee held its 12th meeting in Washington under the Chairmanship of Gordon Brown, who is also the British Chancellor of the Exchequer.

The Committee said that finance ministers and central bank governors of WTO members "have a vital interest in successful multilateral trade liberalization."

It called on all countries to ensure progress on ambitious trade liberalization with the urgency that the timetable now demands.

It also expressed its welcome to the joint IMF-World Bank staffreport on proposals to enable low-income countries to benefit fully from trade liberalization, adding that an ambitious outcome to the Doha Round is also essential for poverty reduction.

The IMF on Saturday agreed that it would forgive an estimated 40 billion US dollars worth of debt for at least 18 poor countriesowed to the IMF, the World Bank and the African Development Bank.

The Committee reiterated that the IMF has a critical role in supporting low-income countries through policy advice, capacity building, and financial assistance.

Speaking of the world economic outlook, the Committee expressedits welcome to the ongoing global economic expansion, although it noted that growth divergences between countries remain wide.

While the global economic growth is expected to continue, the committee said, downside risks to the outlook have increased, especially high and volatile oil prices, the widening of global imbalances, increasing protectionist sentiment, and the possibility of tighter financial market conditions.

The next meeting of the committee will be held in Washington onApril 22, 2006.

Source: Xinhua