MADRID -- Michel Camdessus, managing director of the International Monetary Fund, said Tuesday that he hoped the organization could soon settle a bitter financial dispute that has split rich and poor nations.


But in an address at the formal opening of the IMF's joint annual meeting with the World Bank, Camdessus also signaled he was not backing away from insisting the fund and its reserve currency play a central role in the world monetary system.


"Consultations will have to continue," he said. "I fervently hope that in the coming weeks the membership will be able to resolve the issues involved in a positive way."


The dispute centers on a proposal by Camdessus to pump $50 billion into the world economy through an issue of Special Drawing Rights, the IMF's artificial currency.


Rich industrial nations, led by Germany, oppose the plan, partly because of fears it could lead to the eventual development of the SDR into a global currency and the IMF into a world central bank.


But that is what Camdessus seems to want. He reminded finance ministers and central bankers of the IMF's Articles of Agreement, which envisage the SDR playing a central role in the global monetary system -- a role that has never developed partly because of the opposition of the industrial world.


"Even if the role of the SDR is controversial today, the globalization of the world economy and financial system makes the question of a central reserve asset issued by an international monetary authority even more pressing," he said.


The dispute has blocked the extension of the IMF's special lending window for Russia and the rest of the former Eastern bloc -- the so-called Systemic Transformation Facility -- beyond its scheduled end at the close of the year.


Developing countries have held the extension -- which is favored by industrial nations eager to aid Russia -- hostage in order to win approval of a broad-based SDR hand-out.


Camdessus, who has been sharply criticized by industrial countries for his role in the SDR dispute, spent much of his address to the annual meeting urging IMF member nations to take action to ensure that the budding global recovery flowers.


He called for a tough stance against inflation and an attack on bloated government budget deficits.