G20 Summit News: SA commits USD2bn of foreign reserves to IMF‏

19 Jun

SA’s National Treasury says the $2bn it has committed to the International  Monetary Fund’s (IMF’s) more than $430bn firewall fund will be in the  form of its foreign reserves‚ and will be drawn down only if needed and  only after other resources have been depleted.

South African leaders attending the Group of 20 summit in Los Cabos‚ Mexico‚ announced the commitment on Monday.
The Treasury said the funds would be invested and earn interest‚ and would be drawn down only in emergency circumstances.
“If the funds are drawn down‚ they will ultimately be repaid and they will  continue to earn interest over this period‚” Treasury spokesman Jabulani Sikhakhane said.
The multibillion-dollar fund has been set aside  in efforts to increase IMF resources in order for the institution to  better assist countries distressed by the current global economic  conditions‚ made worse by the deterioration of economies in the  eurozone.
The resources will be channelled through temporary  bilateral loans and note purchase agreements to the IMF’s general  resources account.
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1 Comment

Posted by on June 19, 2012 in International News


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One response to “G20 Summit News: SA commits USD2bn of foreign reserves to IMF‏

  1. Pingback: Magogoni

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