IMF lending power to increase?

17 October 2011

The lending power of the International Monetary Fund (IMF) could be set to increase - which is a move aimed at remedying the debt crisis currently engulfing Europe.

A number of nations - including China and Brazil - are mulling over the possibility of such a raise as part of a global Group of 20 agreement scheduled to take place in Cannes, France next month.

This is according to three officials with knowledge on the matter, Bloomberg reports, who said discussions are currently at a preliminary stage.

Contributors are waiting to see the path European policy makers head down with regards to settling the economic unrest before expanding the talks further.

Dariusz Kowalczyk, a strategist at Credit Agricole - which has been in operation for more than 100 years - said emerging markets may be keen to show they are willing to assist their fellow nations.

The industry figure pointed out: "They do not want to invest too much given that the West’s problems are of its own making," but added that the help they do give should be of the kind that brings them benefits and recognition.

By Claire Archer

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