IMF Reassures on its Liquidity Levels

The International Monetary Fund has “record levels of liquidity” to combat the global economic crisis and debate over new ways of supplementing its coffers was not “today’s problem”, according to John Lipsky, IMF first deputy director. With the Fund facing unprecedented calls on its resources, some policymakers have raised concerns about its continued capacity to react to demands such as its $16.5 billion loan to Ukraine and $2 billion loan to Iceland, the Financial Times reported yesterday. Gordon Brown, UK prime minister, and Nicolas Sarkozy, president of France, say oil-producing nations should provide financial support for the Fund, and the G20 summit in Washington on November 15 is expected to be dominated by efforts to persuade countries like China, Japan and Saudi Arabia to use foreign exchange reserves to back rescue lending programmes for the IMF. Read more.