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Christine Lagarde: IMF may need billions in extra funding

Posted By admin On September 26, 2011 @ 3:04 am In Money Watch | Comments Disabled

Louise Armitstead and Jonathan Russell
London Telegraph [1]
Sept 26, 2011

Christine Lagarde has signalled that the International Monetary Fund (IMF) may have to tap its members – including Britain – for billions of pounds of extra funding to stem the European debt crisis.

The head of the IMF has warned that its $384bn (£248bn) war chest designed as an emergency bail-out fund is inadequate to deliver the scale of the support required by troubled states.

In a document distributed to the IMF steering committee at the weekend, Ms Lagarde said: “The fund’s credibility, and hence effectiveness, rests on its perceived capacity to cope with worst-casescenarios. Our lending capacity of almost $400bn looks comfortable today, but pales in comparison with the potential financing needs of vulnerable countries and crisis bystanders.”

The suggestion came after European officials revealed they were working on a radical plan to boost their own bail-out fund, the European Financial Stability Facility (EFSF), from €440bn (£384bn) to around €3 trillion.

Full article here [1]

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URLs in this post:

[1] London Telegraph: http://www.telegraph.co.uk/finance/financialcrisis/8788223/Christine-Lagarde-IMF-may-need-billions-in-extra-funding.html

[2] Christine Lagarde Warns Of Global Depression If Governments Don’t Pay Up: http://www.prisonplanet.com/christine-lagarde-warns-of-global-depression-if-governments-dont-pay-up.html

[3] With Europe Broken Again, Sarkozy And Lagarde Are Back To Begging: http://www.prisonplanet.com/with-europe-broken-again-sarkozy-and-lagarde-are-back-to-begging.html

[4] A Second Greek Man On ‘The Lagarde List’ Has Been Found Dead: http://www.prisonplanet.com/a-second-greek-man-on-the-lagarde-list-has-been-found-dead.html

[5] Bailout of eurozone countries will cost us billions more, Osborne admits: http://www.prisonplanet.com/bailout-of-eurozone-countries-will-cost-us-billions-more-osborne-admits.html

[6] Greece should quit euro unless “massive” funding given: Czech: http://www.prisonplanet.com/greece-should-quit-euro-unless-massive-funding-given-czech.html

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