EU Loans to IMF May Open Door to Funds From Brazil, China
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An agreement by European Union leaders to boost the International Monetary Fund’s resources may open the door to similar loans by nations from South Korea to Brazil in a global effort to stem the European debt crisis.
European leaders meeting in Brussels agreed to make bilateral loans to the IMF of as much as 200 billion euros ($267 billion) and bowed to European Central Bank demands for a tightening of anti-deficit rules. The move raises the odds for aid from Group of 20 nations, which held back last month because they said Europe wasn’t doing enough to help itself.