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German Lawmakers Won’t Vote on Bundesbank Loan to IMF, FAZ Says

Lawmakers from Chancellor Angela Merkel’s coalition refuse to vote on a plan to use central bank loans to increase the International Monetary Fund’s lending capacity, the Frankfurter Allgemeine Zeitung said.

A Bundesbank loan to the IMF as part of an international effort aimed at stemming the euro-area debt is a matter for the independent central bank and so doesn’t require parliamentary approval, the newspaper cited Christian Democrat Norbert Barthle and Free Democrat Volker Wissing as saying. Parliament’s budget committee will take note of the plan at a meeting tomorrow without voting on it, the newspaper said.

European Central Bank Executive Board member Juergen Stark rejects such an increase of the IMF’s lending capacity by mostly European central banks that flows back to Europe, saying it’s an attempt to circumvent the ban on monetary state financing in the euro area, the newspaper citing him as saying an interview.

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