Lender without limit
Article Abstract:
The International Monetary Fund (IMF) lends to governments, but cannot cope with all crises due to lack of resources. The US provided loans for Mexico in the rescue of 1995, since the IMF was unable to provide the large sums needed. There are political reasons why the IMF does not have more funds, such as the reluctance of the US to contribute more. The problem of moral hazard is also an obstacle to increasing the resources of the IMF to very large levels. The IMF has performed a useful role in helping Asian economies, and is more or less the appropriate size.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1998
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A peek inside the IMF's vaults
Article Abstract:
Mixed views are being expressed about the true state of the International Monetary Fund's (IMF) finances. It has total resources of 144 billion special drawing rights, or $192 billion, but not all this money is paid in hard currencies, and it therefore does not have this much to lend. Before agreeing additional economic assistance for Russia, the IMF had 52.6 billion special drawing rights of liabilities where the country whose money has been used for loans can demand it back at any time.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1998
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Funds for the Fund
Article Abstract:
There is a danger that the US House of Representatives will contribute to worldwide financial instability if it continues to refuse to back the US's share of new funding for the International Monetary Fund (IMF). It is vital that the IMF does not run out of funds, as this would mean that the next collapse of an emerging market could bring a default that would have a negative impact on all other emerging markets. This would in turn bring the danger of a worldwide economic slump.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1998
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