Lagarde eyes $400 b rise in IMF funds this week; Japan pledges $ 60 b

Wednesday, 18 April 2012 00:07 - - {{hitsCtrl.values.hits}}

MILAN: IMF chief Christine Lagarde hopes to gain broad consensus on a more than $400 billion rise in the fund’s firepower this week, an Italian newspaper on Tuesday quoted her as saying, though it may take some time to gain final commitments.

“I really hope this week we’ll reach the critical mass of more than $400 billion. We are determined to do all we can,” Christine Lagarde told financial daily Il Sole 24 Ore.

“I am ready to leave the matter open for a few weeks: some countries need a little bit more time for parliamentary approval,” she added. Lagarde reiterated her view that the increase needed in the IMF’s firepower was now estimated to be smaller compared to when it was last assessed at end-December.

“The overall risk evaluation is unchanged, but we are in April and some countries have already raised on the markets more than half of what they need for 2012, so our estimate has shrunk.” Meanwhile Japan has pledged $ 60 billion for IMF.

Lagarde in a statement said she welcome the announcement by Finance Minister Jun Azumi on the Japanese authorities’ intention to contribute US$60 billion in additional resources to the IMF.

“This is an important step forward in the ongoing international effort to strengthen the adequacy of the global resources available to prevent and fight crises and to promote global economic stability. Japan has a longstanding record of helping others, and of supporting the IMF in its core mission of helping to support economic stability in all its member countries. I am grateful for Japan’s leadership and strong commitment to multilateralism, and I call on the broader Fund membership to follow Japan’s lead,” she said. “This would complement the US$200 billion in pledges already received from the Euro Area and enable decisive progress to be made by the time of the Spring Meeting of our global membership later this week,” Lagarde added.