September 17, 2010
IMF Unveils $8Bln In New Loan Resources For Poor Nations
WASHINGTON -(Dow Jones)- The International Monetary Fund announced $8 billion in new funding resources for poor countries hit by the global economic crisis.
While wealthy nations have suffered during the crippling credit crunch and subsequent recession, many developing nations have been hardest hit, as financing pulled out of their economies. Financing needs for infrastructure projects, power plants, hospitals and a slew of other investments have stalled, putting vulnerable economies at risk.
The IMF said it had signed financing agreements with Japan, the U.K., France and China to fund the new loan resources.
The new loan capabilities represent about half of the resources the IMF said it would be seeking for bilateral loans for low-income nations. The announcement is part of a larger program that includes gold sales to boost concessional lending up to $17 billion through 2014.
"The G20 asked the Fund to help respond to the global economic crisis, which has hit the low-income nations so hard, and we are responding with a historic set of actions in terms of support for the world's poor," IMF Managing Director Dominique Strauss-Kahn said in unveiling the program in late July.
"The new resources and new means of delivering them should help prevent millions of people from falling into poverty," he said then.
http://www.foxbusiness.com/markets/2010/09/17/imf-unveils-bln-new-loan-resources-poor-nations/
IMF Unveils $8Bln In New Loan Resources For Poor Nations
WASHINGTON -(Dow Jones)- The International Monetary Fund announced $8 billion in new funding resources for poor countries hit by the global economic crisis.
While wealthy nations have suffered during the crippling credit crunch and subsequent recession, many developing nations have been hardest hit, as financing pulled out of their economies. Financing needs for infrastructure projects, power plants, hospitals and a slew of other investments have stalled, putting vulnerable economies at risk.
The IMF said it had signed financing agreements with Japan, the U.K., France and China to fund the new loan resources.
The new loan capabilities represent about half of the resources the IMF said it would be seeking for bilateral loans for low-income nations. The announcement is part of a larger program that includes gold sales to boost concessional lending up to $17 billion through 2014.
"The G20 asked the Fund to help respond to the global economic crisis, which has hit the low-income nations so hard, and we are responding with a historic set of actions in terms of support for the world's poor," IMF Managing Director Dominique Strauss-Kahn said in unveiling the program in late July.
"The new resources and new means of delivering them should help prevent millions of people from falling into poverty," he said then.
http://www.foxbusiness.com/markets/2010/09/17/imf-unveils-bln-new-loan-resources-poor-nations/
