Unlike in previous crises in many emerging markets, this is a financial sector crisis as opposed to the balance of payments troubles of the past, and the IMF has urged quick and co-ordinated actions to limit the damage.
As governments world-wide have pumped more cash into money markets to restart interbank lending, the US outlined a plan to invest $250 bln in its banks but there were still doubts whether it would revive confidence and avert a global recession. "We have about six or seven countries in the pipeline," a senior IMF official told Reuters, speaking on condition of anonymity. "I wouldn't be surprised if there were about a dozen countries after a few months," the official added.
Tighter credit conditions and fears that bank guarantees in developed economies could see more private capital flow out of emerging market assets has policymakers worried. The IMF said on Monday it was ready to offer financial and technical help to Hungary, who has a stable banking system but could find it harder to finance its large debt load as credit tightens .
Serbia said it would ask the IMF for a new deal, but an agreement is unlikely to be announced before IMF officials visit Belgrade next month, senior government officials said.
"We are certainly not in a group of emergency cases, such as Hungary," one official told Reuters. "But we need the agreement for longer-term stability." An IMF official in Washington told Reuters on Monday that Ukraine had sought IMF help, and press reports on Tuesday said an IMF mission is expected in the capital Kiev shortly.