Obama proposes $100 bn in US funding for IMF
Last week the IMF forecast a prolonged, deep global recession, with recovery slow and difficult. All about IMF | More on Financial crisis | Countries in recession
By Agencies |
WASHINGTON: US President Barack Obama on Monday proposed $100 billion in additional U.S. funding to boost the resources of the International Monetary Fund and urged increased voting power for major emerging economies.
In a letter to US congressional leaders, Obama said the US funding "does not represent a budgetary expenditure or any increase in the deficit since it effectively represents an exchange of assets."
Under the IMF's new credit scheme designed to throw a cash lifeline to countries hit by the global economic crisis, Colombian authorities are seeking a one-year arrangement for 900 percent of its quota, or about 10.4 billion dollars, IMF managing director Dominique Strauss-Kahn said in a statement.
Colombia joins Poland in requesting a line of credit from the 185-nation IMF, which launched its no-strings-attached FCL in late March to member countries with strong economic track records.
Poland has requested a 20-billion-dollar line of credit under the FCL, which allows a country to draw funds at any time.
Mexico became the first to win approval for the new credit line Friday, gaining access to a record 47 billion dollars.
The IMF's 47-billion-dollar credit line to Mexico was the largest financial arrangement in the 64-year-old institution's history.
Last week the IMF forecast a prolonged, deep global recession, with recovery slow and difficult.
Other potential candidates for an IMF credit line are Brazil, Chile, South Korea, the Czech Republic and Singapore.
In a letter to US congressional leaders, Obama said the US funding "does not represent a budgetary expenditure or any increase in the deficit since it effectively represents an exchange of assets."
Under the IMF's new credit scheme designed to throw a cash lifeline to countries hit by the global economic crisis, Colombian authorities are seeking a one-year arrangement for 900 percent of its quota, or about 10.4 billion dollars, IMF managing director Dominique Strauss-Kahn said in a statement.
Colombia joins Poland in requesting a line of credit from the 185-nation IMF, which launched its no-strings-attached FCL in late March to member countries with strong economic track records.
Poland has requested a 20-billion-dollar line of credit under the FCL, which allows a country to draw funds at any time.
Mexico became the first to win approval for the new credit line Friday, gaining access to a record 47 billion dollars.
ADVERTISEMENT
The IMF's 47-billion-dollar credit line to Mexico was the largest financial arrangement in the 64-year-old institution's history.
Last week the IMF forecast a prolonged, deep global recession, with recovery slow and difficult.
Other potential candidates for an IMF credit line are Brazil, Chile, South Korea, the Czech Republic and Singapore.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
