Christine Lagarde: IMF may need billions in extra funding

[dkf]

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.

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

[Democracyinkind]

1. This is how Super-Imperialism ends.

Not with a whimper, but with a bang.

[dixiegrrrrl]

2. Earth to IMF: NO!!!!!!!!

The IMF is a money sucking vampire. I am absolutely flabbergasted that it has been allowed to exist, much less that we have been feeding it our hard earned money.

[cutlassmama]

5. +1

they "need" while we starve in the streets.

[ixion]

3. Then it's a good time to let the IMF fail

since they're not helping anyway.

[DCBob]

4. interestingly all the major European stock markets are way up at the moment.

suggesting investors see something positive going on.

[dkf]

6. That is odd.

Our futures are up nicely too.

[marmar]

7. It's time for the IMF's reign of terror to come to an end.....

Starve the real beast.