Around half the 67bn Euro European Union structural fund allocation to the country is being spent on road development, sanitation and environmental improvements.

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While there are no structural requirements that a venture fund must meet, these funds are generally organized as limited partnerships.

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The UK is pressing for a series of solutions, including a larger bailout fund, euro bonds and structural reform within the European Union - which could lead to greater fiscal burden-sharing between the poorest and wealthiest countries.

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Increasingly the Fund is being drawn into the area of structural reform while the Bank is getting involved in liquidity support.

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That allows the Treasury to claim the chancellor has already followed the Fund's advice, since the Fund now forecasts he will make slower progress cutting the structural deficit over the next few years than previously thought.

BBC: IMF looks ahead

In written replies to Asiaweek's questions, the Fund's first deputy managing director also stressed the need for continued structural reform in countries hit by the Asian Economic Crisis.

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It has also put off much-needed structural reform of provincial-government finances, a commitment made by the previous government to the International Monetary Fund (IMF) as a condition of its loan agreements.

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