New IMF lending modalities approved
Monday 18 June 2012
The modalities for an additional US$430 billion lending capacity from the International Monetary Fund (IMF) were agreed by the fund’s Executive Board, on 15 June. The board is implementing a political decision taken at the IMF’s spring meeting, on 20 April, to almost double its lending resources in response to the eurozone debt crisis. Emerging and developed economies around the world, including China, Japan, Brazil and many EU member states, are contributing to this new fund, although the United States and Canada are not. Though the funds are not explicitly earmarked for indebted EU countries like Spain and Italy, the general understanding has been that this is the IMF’s own firewall designed to help protect the eurozone economy.