News - Economics / markets
Categories: Economics / Markets
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.
Saudi Arabia $15bn
South Korea $15bn
Sweden At least $10bn
Czech Republic $2bn
South Africa $2bn
New Zealand $1bn
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