International Monetary Fund
Baku, April 23 (AZERTAC). The International Monetary Fund, based in Washington, D.C., is the global economy’s lender of last resort to countries in crisis.
The I.M.F. announced that it had raised at least $430 billion in extra lending capacity to be used if the euro zone crisis worsens or global financial conditions deteriorate.
The announcement came during the spring meetings of the I.M.F. and its sister institution, the World Bank. World leaders had gathered in Washington to discuss how to jolt growth, reduce unemployment and poverty, and ensure financial stability around the world.
The new commitments come mostly from wealthy, developed economies: $60 billion from Japan; $15 billion each from Britain, Saudi Arabia and South Korea, and smaller amounts from countries including Sweden, Norway, Poland, Australia, Denmark and Singapore. Those sums will join about $200 billion in commitments previously made by euro zone countries.
But fast-growing, cash-rich emerging economies — including Brazil, China, Russia and India — chose not to make specific pledges at the spring meetings. They have indicated that they will contribute, Ms. Lagarde said, but they have not committed to certain dollar amounts. The countries are expected to name their precise contributions at a Group of 20 summit meeting in Mexico in June 2012, after consulting with their governments at home.
The new contributions to the I.M.F. came after the fund reassessed the global economy in light of continuing troubles in Europe this winter. Its economists determined that in the coming years, countries around the world might require up to $1 trillion in new loans from problems coming from the euro zone and sluggish global growth more generally.
Other news in this section
