The International Monetary Fund’s International Monetary and Financial Committee (IMFC) and the Group of 20 Finance Ministers and Central Bank Governors have agreed to enhance IMF resources for crisis prevention and resolution by over $430 billion.
“There are firm commitments to increase resources made available to the IMF by over $430 billion in addition to the quota increase under the 2010 reform,” the joint statement by IMFC and Group of 20 said on Friday.
“These resources will be available for the whole membership of the IMF, and not earmarked for any particular region,” the statement said.
Christine Lagarde, IMF Managing Director, hailed the agreement, which almost doubles the IMF lending capacity, and said it “signals the strong resolve of the international community to secure global financial stability and put the world economic recovery on a sounder footing.”
Lagarde thanked all IMF members that have announced specific contributions and those countries that have made private pledges but did not want to issue public commitments.
“I am also grateful to China, Russia, Brazil, India, Indonesia, Malaysia, and Thailand, and other countries all of whom have indicated that they will be among the contributors,” she said in a statement.
Russian Deputy Finance Minister Sergei Storchak said on Friday that Russia was ready to provide the IMF with additional $10 billion.
Meanwhile, the United States and Canada refused to provide additional funds to the IMF stating that their respective contributions in the past were sufficient and other countries should do more to rescue the world from sinking further into recession.
The IMF is an international financial organization with headquarters in Washington, D.C.
The IMF describes itself as “an organization of 188 countries [as of April 2012], working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty.”
