IMF Staff Recommends Extending Fund’s Emergency Resources Pool
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The International Monetary Fund should prolong an emergency lending pool activated after the global financial crisis because permanent resources alone are insufficient to respond to another bout of instability, according to the fund’s staff.
Expiration of the supplemental financing at the end of the month would leave the fund with lending capacity of about $150 billion compared with $338 billion now, the staff wrote in a report dated March 1 and obtained by Bloomberg News. The note was prepared for the IMF board and for contributors of the so-called New Arrangements to Borrow that are weighing whether to extend the pool for another six months.