WASHINGTON: Britain will provide the International Monetary Fund with some $15.5 billion to support the IMF’s lending capacity amid the global downturn, the multilateral institution said Tuesday.
The IMF said the British financing was part of a commitment made by the European Union in March 2009 to contribute up to 75 billion euros — “then equal to about $100 billion” — to support the IMF’s lending capacity.
Borrowing agreements have also been signed with Japan, Norway’s central bank Norges Bank and Canada.
“These agreements contribute toward an increase in fund resources that was requested in April 2009 by G20 (Group of 20) leaders and the International Monetary and Financial Committee in order to provide timely and effective balance of payments assistance to its members in the current crisis,” the Washington-based institution said.
The action was part of a $1.1 trillion plan agreed by G20 leaders in early April to tackle the global financial and economic crisis.
The G20 also planned to triple IMF resources to $750 billion to support the institution’s ability to help member countries weather the worst slump since World War II.
The IMF’s finances have come under pressure as the global crisis spread from the advanced economies to the developing world, stifling trade flows and investment.