June 5 (Bloomberg) -- China is “actively” considering buying as much as $50 billion of International Monetary Fund bonds, the State Administration of Foreign Exchange said in a faxed statement.

“If the terms of the bond issue meet China’s requirements in investing its foreign currency reserves in terms of security and a reasonable return, we are willing to actively consider investing up to $50 billion,” the agency, which oversees the country’s record $1.95 trillion foreign-exchange reserves, said.

The IMF is seeking more cash to finance loans and aid to member countries during the worst economic slump in the fund’s 64-year history. The Washington-based lender, an agency of the United Nations that monitors the global economy and makes loans to members, has never issued bonds.

As the institution taps some of its 185 members for additional cash injections, emerging economies say they want more decision-making power at the fund, setting up a possible clash with the rich nations that run it. China and Brazil are among a handful of nations that have expressed interest in purchasing the securities.

“China has always been committed to supporting the IMF’s fund-raising efforts through market-based channels,” the Chinese agency said in today’s statement.

The agency issued its statement after the IMF’s First Deputy Managing Director John Lipsky told a conference in Russia that China planned to buy the organization’s bonds. Russia said last month that it plans to buy $10 billion of the notes.

--Li Yanping. Editor: Michael Dwyer

To contact Bloomberg News staff for this story: Li Yanping in Beijing at +86-10-6649-7568 or yli16@bloomberg.net

Last Updated: June 5, 2009 05:45 EDT