Home News Increase In IMF Funds Crisis Threatens To Come To A Halt

Increase In IMF Funds Crisis Threatens To Come To A Halt

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Copy of 5_washington_Foto_BuccinoWASHINGTON (Dow Jones) – The target of the Europeans increased crisis preparedness resources of the International Monetary Fund (IMF) is threatening to seize up. Just before the start of the IMF spring meeting in Washington, expressed in particular Brazil, China, Canada and major developing countries are reluctant to increase the short-term lending capacity of the IMF. (Photo: Buccino)

Brazil was not yet ready to call a certain amount of additional resources of the IMF, because the decisions agreed reform of the IMF voting power are not enough, said Finance Minister Guido Mantega. Brazil and other major developing countries are striving for a stronger influence in the IMF, which is intended to reflect their growing importance in the world.

"Some countries show a greater enthusiasm in addressing the emerging market for more money, as in the reform of the IMF’s voting rights, because they will lose influence," Mantega said in allusion to the states of the euro zone. Federal Finance Minister Wolfgang Schäuble (CDU), had tried in advance of the IMF’s annual meeting, to avoid linking the increased funding to the IMF reform, because he feared that the reform could drag on longer and thus the increase in crisis prevention tool. Europeans had to their meeting in Copenhagen decided on a combination of their shields EFSF and ESM, thereby increasing its anti-crisis to around 800 billion euros, or about 1 trillion U.S. dollars. The euro-zone countries had hoped that the IMF would expand its lending capacity in return for a similar size. However, things are starting already, that the sum will remain significantly lower. Canadian Finance Minister Jim Flaherty, the hopes of the euro zone with tough criticism of the European crisis put a damper offset policy. The European situation is still dangerous and still not have the financial fire-walls of the Euro zone sufficient, said Flaherty. In addition, the European banking system was "hopelessly under-capitalized." Only for the European Central Bank (ECB), the Canadian praise had left: the actions of the ECB for crisis containment are "valuable" was. China also proved reluctant to embrace larger IMF Resources: Foreign Minister Liu Weimin made ​​an increase in particular progress on the IMF voice reform depends on how the agency Xinhua reported. The Minister said that in 2010 adopted reforms to be ratified would have to make a budget increase is possible. ECB board member Joerg Asmussen said at a conference in Washington, by increasing its financial firepower to around $ 1 trillion would have the Europeans "do their part done ". Now let "our partners in the series" to increase the lending capacity of the IMF. Asmussen expressed his confidence that an agreement can be reached by an increase in IMF crisis funds this weekend. The IMF chief Christine Lagarde, meanwhile, their wishes clear after a budget increase screwed down: Before the meeting of 20 leading industrial and emerging economies (G20) at the weekend said Lagarde, the IMF is the desired increase of around 400 billion dollars come closer. Hope you have commitments of over 320 billion dollars in new funds and more, said the IMF director. At the G-20 meeting will Lagarde reach the "critical mass" for its planned doubling of the IMF’s resources to Europe in the to help combat the debt crisis. So far, the IMF out put 381 billion dollars to support needy countries. delaying Santander opposition to increased funding also comes from the poorer countries of the world where the view is widespread that Europe is rich enough to help themselves. The Group of 24 developing countries (G-24) stated that they needed more time to decide on participation in the increase. "There needs to be worked out in detail, how large the contribution of the affected countries, and some countries cut more time," said the G-24 Chairman, India’s Finance Minister Pranab Mukherjee. The IMF members had in 2010 agreed to major give emerging economies a greater voting power. Some countries, including the United States have not ratified the amendment date. China, Brazil and India have not therefore participate in the planned increase of IMF resources. They have in recent years partly paid bonuses and are now hoping for a conversion of those funds in voting. , the increase of the IMF quota and voice reform should be linked, then threatened a delay until January 2013. Because of the IMF’s 188 member countries, the Steering Committee has asked to implement the already agreed quota and voice reform in 2010. Otherwise, threatening a loss of legitimacy and credibility.