Fears for IMF’s Ability to Raise Rescue Funds
February 24th, 2009Let me guess: Sovereign gold sales?
Via: Times:
Fears are growing that the International Monetary Fund will struggle to raise enough cash to help all the countries that need emergency aid as the global financial crisis unfolds.
The leaders of Europe’s wealthiest countries pledged on Sunday to help the IMF to raise at least a further $200 billion for crisis loans, but there was little sign on Monday that EU members will be able to find such sums while facing their own pressures.
Treasury sources said that Gordon Brown, as chairman of the G20 group of leading economies, would hold a series of bilateral meetings in the run-up to the London summit on April 2. These meetings will tackle the issue of reforming regulation and global financial institutions, as well as the more delicate task of raising funds for the IMF, the international lender of last resort, which is based in Washington.
The IMF has said that, after Japan agreed last week to loan it $100 billion, it has about $300 billion available to lend, short of its target of $500 billion. The key to finding the rest will be those countries with large sovereign resources, according to Treasury sources. China and states with oil reserves are thought to head that list.
