IMF's Koehler calls for dialogue at Prague meet

PRAGUE, Czech Republic (Reuters) -- International Monetary Fund President Horst Koehler said after meeting anti-IMF groups on Monday he hoped further talks would prevent violence at the Fund's meeting in Prague in September.

Koehler met representatives of non-governmental organizations (NGO) which want the IMF to attach less stringent conditions to loans for poorer countries and to offer them faster debt relief.

"I met today with 10 or 12 members of NGOs. We had a very good discussion," Koehler told a news conference.

Tensions have risen ahead of the annual IMF/World Bank meeting of government and business leaders from 180 countries, which is expected to bring 15,000 participants and at least as many protesters to the Czech capital.

It will be the first major conference in Europe since a December gathering of the World Trade Organization in Seattle was hit by clashes between police and protesters backing causes ranging from debt relief to the protection of sea turtles.

Koehler's meeting with the NGOs came after a call by Czech President Vaclav Havel for talks in September between demonstrators and bankers to forestall violent clashes.

"We didn't agree on all the points, the time was not right for that, but based on this discussion I have a good feeling it's worth having this dialogue the president is recommending to create a climate of openness," said Koehler.

FOCUS ON REFORM

He played down the threat of violence at the nine-day event, which will be guarded by 11,000 police. "We should not overstate the concerns about demonstrators," he said.

After meeting Koehler, Havel lamented the growing media focus on potential turmoil and said more should attention should be given to solving global economic problems.

"I am rather sorry when I see the great amount of publicity devoted to the security aspect. It creates the impression the country is preparing for some sort of civil war," he said.

Koehler laid out a five-point agenda for the high-level gathering, focusing on faster debt relief, more open dialogue on global economic issues, internal reform and reducing poverty.

"There is an urgent need for cooperation, and this should be the main message for this annual meeting," Koehler said.

"There is a further need for structural reforms, not least in Europe, in order to promote sustained strong growth...to create jobs, to create income, to reduce unemployment, and to reduce poverty in the third world."

Koehler said the meeting should focus on five key areas:

1. Internal reform of the IMF, focussing more on a partnership between the Fund's members and the nations it aids.

2. Refocus the Fund on macroeconomic stability to promote sustained growth and fight poverty.

3. Take stock of efforts underway to strengthen the international financial system.

4. Complete a debt relief initiative from the Cologne summit last year, hasten a review of those efforts, and decide earlier on debt relief.

5. Better understand poorer countries and their difficulties with reform, and adjust the Fund's emphasis on "conditionality."

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