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SOME OF THE WORLD’S largest economies have agreed to invest more than €325 billion in new funding for the International Monetary Fund, in a bid to increase its lending capacity and help it to fight the global debt crisis.
The Eurozone will be the largest contributor, sending €150 billion of funds to Washington in order to bolster the IMF’s resources, as fears resurge about the possibility of large economies like Spain being priced out of bond markets.
China, Russia, Brazil and India will be among the countries contributing to the current funding batch, though the exact quantities of their contributions have yet to be determined.
In a joint statement the IMF and the G20 said they remained “committed to take the necessary actions to secure global financial stability”.
“We have reached agreement to enhance IMF resources for crisis prevention and resolution. This is the result of a broad international cooperative effort that includes a significant number of countries,” they said.
The extra funding will be provided through temporary bilateral loans to the IMF’s main account. The money is being handed over on the condition that if it is ever needed to bail a country out, the “adequate burden sharing among official creditors would apply, as approved by the IMF Board”.
IMF managing director Christine Lagarde said the pledge of extra funding “signals the strong resolve of the international community to secure global financial stability and put the world economic recovery on a sounder footing”.
“This broad-based response to our request for additional resources will help strengthen global economic and financial stability in the interests of all our members.”
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Worldwide tax payer money being syphoned into a fund to pay off bankers and industrialists.
Seems a vicious circle, we need credit from banks to balance our books …
Are we heading in the direction of Bolivia back in the 90′s with the IMF co-running our country! Will they introduce water meters for the rain that falls on us?.. If Bolivia were the guinea pigs are we the text dummies?.. They had years of civil war from it.
I reckon war is inevitable after each country and the IMF begin to realise that everyones economy is phucked. Will i fight for this corrupt dive? HELL NO!
Guinea pigs are a delicacy in Ecuador after what happened there, by that reasoning we’ll all be doing our worshiping in cash for gold shops on Sunday mornings! Bring back Thomas Gear….
You better keep pumping guys.
Thanks to you, it’s the only way out now.
Can’t wait for those trillion euro notes to be printed.
Closer fiscal union with shared sovereignty (according to Herman von Rumpy pumpy our unelected European president) and or hyper inflation, carbon taxes and indentured servitude for future generations as we pay off debts created for just such reasons.
Where is this going to stop.
€150 billion for the *whole* Eurozone?…. pah… pocket change.
We’re so rich our little country can afford to put €85 billion into our banks!
have your say