IMF Expansion (Treasury)

The IMF Expansion

The U.S. provided $100 billion of the $500 billion expansion of the IMF’s lending capacity agreed upon at the G-20 summit in April 2009. Treasury said the IMF needed the funds in order to ensure the IMF had sufficient funds to prevent the spread of financial crises.

Funding agency and aid type
The funding agency is the US Treasury.

Funds to IMF.

Who benefits
Global markets.

Background
SIGTARP: "“Commitments to International Fund — Total Potential Support: $100 Billion. On April 2, 2009, President Obama secured an agreement to increase the International Monetary Fund (“IMF”) New Arrangements to Borrow (“NAB”) by up to $500 billion, of which the United States committed up to $100 billion. According to Treasury, “expanding the NAB will ensure the IMF has adequate resources to play its central role in resolving and preventing the spread of international economic and financial crises. Large and urgent financing needs projected for emerging markets and developing countries cannot be met from pre-crisis IMF lending resources.”"

Treasury (via Prins): "“On April 2, at the G-20 Leaders’ Summit in London, President Obama secured agreement to increase the IMF New Arrangements to Borrow (NAB) by up to $500 billion, of which the United States committed up to $100 billion. President Obama is seeking Congressional approval for two actions to strengthen the IMF as part of the FY 2009 supplemental bill currently under consideration – an increase of up to $100 billion for U.S. participation in the NAB, and an increase of about $8 billion in the U.S. quota in the IMF.”"

Related SourceWatch articles

 * SIGTARP Quarterly Report to Congress July 21, 2009
 * Troubled Asset Relief Program

External resources

 * FRBNY factsheet
 * Fed data