Christine Lagarde: IMF may need billions in extra funding

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Louise Armitstead and Jonathan Russell
London Telegraph
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.

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2 Responses to “Christine Lagarde: IMF may need billions in extra funding”

  1. I told you last week about this. Another form of banking system that needs to be dismantled…

  2. It’s a business, right?
    theres always a chance a business might not work if its not running correctly. Why bail them out? They didn’t make it work, obviously.
    But noooOOOOoo… its money.
    You motherfuckers are in for one hell of a shock…

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