Buba eyes 45 bln eur credit line to IMF -report
Baku, December 12 (AZERTAC). The Bundesbank stands ready to boost its credit line to the International Monetary Fund to up to 45 billion euros ($60 billion) to strengthen the fund`s crisis fighting capabilities, a Bundesbank board member said in an interview, Reuters reports.
"It makes complete sense in the current situation to strengthen the general capabilities of the IMF," Bundesbank Executive Board member Andreas Dombret told German news agency DPA.
The increase, part of the 200 billion euros in additional bilateral credit that EU leaders agreed to make available to the IMF, would mean a tripling of the Bundesbank`s current credit line and was not the same thing as giving direct credits, Dombret said.
The funds could not be used exclusively to help fight the euro debt crisis as this would be a clear violation of rules forbidding monetary financing of state deficits.
"The Bundesbank has expressly forbidden that," he said.
Countries outside the European Union would also be expected to contribute to the general boosting of the IMF`s firepower, he said.
Strengthening the Bundesbank`s credit line to the IMF is not entirely without risk to the German taxpayer, however, and Dombret said the central bank wanted the express consent from lawmakers in the Bundestag for the move.
"It is important to us that in this special case the Bundestag gives its approval for the additional credit line to the IMF and confirms that the Bundesbank is not in conflict with earlier parliamentary decisions on limiting risks," Dombret said.
Former Bundesbank Vice President and outgoing European Central Bank Chief Economist Juergen Stark was quoted by Sueddeutsche Zeitung newspaper on Sunday as saying that more involvement by the IMF in stemming the euro zone crisis would be an "act of desperation."($1 = 0.7482 euros)
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