IMF to raise $500 billion

@CNNMoneyInvest January 18, 2012: 1:15 PM ET
IMF managing director Christine Lagarde has requested an increase in the fund's resources as global financing needs are expected to reach $1 trillion over the next few years.

IMF managing director Christine Lagarde has requested an increase in the fund's resources as global financing needs are expected to reach $1 trillion over the next few years.

NEW YORK (CNNMoney) -- The International Monetary Fund said Wednesday that it plans to raise up to $500 billion in order to meet an estimated $1 trillion worth of financing needs over the coming years.

The new funding includes a $200 billion commitment announced by euro area governments last year, the IMF said. It was unclear Wednesday where the remaining resources would come from.

The fund said it is "exploring options on funding" and would not comment further until various discussions with its members have been completed.

A U.S. Treasury Deparment official said "[the United States has] no intention to seek additional resources for the IMF."

U.S. officials said the IMF has sufficient funding to meet its objectives, including its role in the eurozone debt crisis.

"Europe has the capacity to solve its problems," the official said in a statement. "The IMF cannot substitute for a robust euro area firewall."

The 187-member IMF provides financial assistance to struggling economies around the world as part of its mission to maintain the stability of the global financial system.

World Bank warns on risk of global recession

The IMF, which measures its funds in a basket of currencies known as Special Drawing Rights, has about $390 billion to work with.

The Washington, D.C.-based fund has been a key player in combating the ongoing debt crisis in Europe, taking part in bailouts for Greece, Ireland and Portugal.

IMF managing director Christine Lagarde said late Tuesday the fund was reviewing the adequacy of its resources at the request of its members following a summit of world leaders last year.

"The biggest challenge is to respond to the crisis in an adequate manner and many executive directors stressed the necessity and urgency of collective efforts to contain the debt crisis in the euro area," she said, adding that economies around the world remain vulnerable to financial "spillovers" and economic imbalances. To top of page

Index Last Change % Change
Dow 17,055.87 -116.81 -0.68%
Nasdaq 4,508.69 -19.00 -0.42%
S&P 500 1,982.77 -11.52 -0.58%
Treasuries 2.54 -0.03 -1.21%
Data as of 4:45pm ET
Company Price Change % Change
Bank of America Corp... 17.05 0.02 0.12%
Yahoo! Inc 39.05 0.40 1.03%
Apple Inc 102.64 1.58 1.56%
Facebook Inc 78.29 1.49 1.94%
Oracle Corp 38.83 -0.75 -1.89%
Data as of 4:01pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.17%4.24%
15 yr fixed3.26%3.30%
5/1 ARM3.33%3.42%
30 yr refi4.16%4.22%
15 yr refi3.25%3.29%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.