IMF finalising $100-billion loan from Japan

The International Monetary Fund (IMF) is finalising a $100-billion loan from Japan and is considering issuing bonds for the first time in its history, as part of an effort to double the financial resources it has to fight the deepening global recession. "The IMF is not in danger of running out of money", Deputy Managing Director John Lipsky said. The fund has made commitments to lend about $50 billion in recent months to Pakistan, Iceland and a clutch of Eastern European countries, and is talking to others. But the organisation has wanted for months to double its lending ability to about $500 billion from $250 billion, to bolster confidence that it could handle other borrowers amid the crisis, the paper said. But Japan still has one of the world's largest foreign-currency reserves and because plunging global demand for its exports is Japan's biggest single economic problem, shoring up the rest of the world's spending ability could help Japan's recovery too, it added.

ePaper - Nawaiwaqt