IMF crisis fund swells to $456bn as BRIC nations pledge cash

19 Jun 2012 | 07:59
Investment Week
  • Send
  • Comment
  • Send to Kindle

The International Monetary Fund has amassed a $456bn crisis fund to help save the eurozone from the financial storm currently besieging it.

The IMF said the BRIC nations had made pledges of $95.5bn at the latest G20 summit, helping the IMF surpass their funding target of $430bn announced in April.

The money came with a warning that things had to change at the Fund, which has long been dominated by the now troubled economic powers of Europe and the US, which is not contributing despite its huge voting power on the IMF board.

While Washington has insisted Europe has enough resources to resolve its problems itself, it is also clear that the deeply divided Congress is in no mood, given the US economic problems, to contribute rescue funds for others.

The IMF chief said in a statement on Tuesday: "Countries large and small have rallied to our call for action, and more may join. I salute them and their commitment to multilateralism. As a result, total pledges have risen to $456bn, almost doubling our lending capacity."

The money will no doubt be needed shortly, with Spain's debt crisis spiralling. Yesterday bond yields on 10-year Spanish bonds rocketed back above the danger level of 7%, while more worryingly, the yield curve is also flattening.

Below is a list of contributors to the IMF rescue fund so far.

Japan $60bn

Germany $54.7bn

China $43bn

France $41.4bn

Italy $31bn

Spain $19.6bn

Netherlands $18bn

Britain $15bn

Saudi Arabia $15bn

South Korea $15bn

Belgium $13.2bn

Sweden At least $10bn

Brazil $10bn

India $10bn

Mexico $10bn

Russia $10bn

Switzerland $10bn

Norway $9.3bn

Poland $8.3bn

Austria $8.1bn

Australia $7bn

Denmark $7bn

Turkey $5bn

Finland $5bn

Singapore $4bn

Luxembourg $2.7bn

Slovakia $2.1bn

Czech Republic $2bn

South Africa $2bn

Colombia $1.5bn

Slovenia $1.2bn

Malaysia $1bn

New Zealand $1bn

Thailand $1bn

Philippines $1bn

Cyprus $600m

Malta $300m

TOTAL $456bn

Categories: Economics / Markets

Topics: ImfBric

  • Send
  • Comment
  • Send to Kindle

Updating your subscription status Loading