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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.
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
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