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UK pledges $15bn to IMF’s new $456bn crisis fund‏

19 Jun

The UK has pledged a further $15bn to the IMF, after Christine Lagarde   revealed that member states had promised a total of $456bn for its new   crisis fund.

World Bank/International Monetary Fund Spring Meetings in Washington, DC

IMF Chief, Christine Lagarde

China will contribute $43bn, state news agency Xinhua confirmed on Tuesday   morning.

“With today’s announcements by an additional 12 countries, a total of 37   IMF member countries… have joined this collective effort, demonstrating   the broad commitment of the membership to ensure the IMF has access to   adequate resources to carry out its mandate in the interests of global   financial stability,” Ms Lagarde, the IMF chief, said.
“Countries large and small have rallied to our call for action, and more   may join. I salute them and their commitment to multilateralism. As a   result, total pledges have risen to $456bn, almost doubling our lending   capacity.”
The leaders of Brazil, Russia, India, China and South Africa, meeting before a   Group of 20 summit in Mexico, said they “agreed to enhance their own   contributions to the IMF”.
The announcement brought an end to the mystery of how much the powerful BRICS   countries would provide.

They held back two months ago when the IMF solicited commitments at its spring   meetings in Washington and only gathered a firm $340bn.
That was well below the $500bn the Fund’s own economists had said would be an   adequate expansion of its crisis intervention funding, given the potential   of more contagion in the troubled eurozone.
The largest economy, the US, is not contributing, despite its huge voting   power on the IMF board.
While Washington has insisted Europe has enough resources to resolve its   problems itself, it is also clear that the deeply divided Congress is in no   mood, given the US economic problems, to contribute rescue funds for others.

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Posted by on June 19, 2012 in International News

 

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