G20 Increases IMF Firepower, Boosts Funds

"The G20 on Thursday tripled the International Monetary Fund's (IMF) resources, adding $500 billion for a total of $750 billion, giving it more firepower and putting it center stage in the battle against global financial crisis. A G20 summit of developed and developing countries also agreed to support a general allocation of $250 billion worth of IMF Special Drawing Rights (SDRs) to IMF member countries to boost liquidity...." [Reuters/Factiva]

AP adds that "...in a press briefing after the completion of the G20 summit of leaders, IMF Managing-Director Dominique Strauss-Kahn said the international financial institution now had 'the firepower... for what the world may need' after G20 leaders agreed to boost its resources by nearly fourfold...." [Associated Press/Factiva]

Dow Jones writes that "...Strauss-Kahn said the IMF is ready to become a voice that represents low-income countries.... Out of the $250 billion in additional SDRs, low-income countries will receive about $19 billion. The IMF will also commit up to $6 billion to help subsidize concessional loans to the poorest countries, Strauss-Kahn said, more than double the amount previously available he said..." [Dow Jones/Factiva]