The International Monetary Fund has until now provided an estimate of 188 billion dollars to those nations and regions hit by devastation and crisis since 2008, including Greece which has been offered a massive amount of 40 billion dollars to meet its financial woes. The European community as appealed to the IMF to provide a more substantial and extensive amount of 310 billion dollars to be offered to Greece to prevent its crisis from crossing its home borders and spreading across other countries. The IMF can deliver up to 1 trillion dollars as its package of loans and credit.
What are the IMF’s sources?
The World Bank’s financial sources can be traced from its member country quotas and subscriptions. These quotas are based and supplied determined on the size of each country’s economy. Among all the member countries, the United States is its largest quota contributor, providing nearly 17 percent of its financial resources, contributing roughly around 54 billion dollars. In recent times, there have been talks and negotiations on the majority of funds contributed and monopoly power gained by the U.S by China and other powerful emerging economies.
How much does it have currently in its resources?
The International Monetary Fund has about 242 billion dollars in its present pool of financial resources which it can use and give presently as and when needed. For the IMF to mobilize more funds required would take several weeks for it has a lot of procedures and formalities as well.
How much more can the IMF generate?
In addition to the already available 242 billion dollars, the World Bank can initiate and generate an additional amount of 52 billion dollars by activating its reserve crisis fund called NAB or New Arrangements to Borrow. Until recently held in April of this year, the IMF has access to an additional 238 billion dollars by adding 13 new countries as its members. These reserve funds will however only be made available when the countries’ legislatures approve it.
How much can the IMF access from all sources?
The World Bank’s resources are said to reach a record-breaking amount of 850 billion dollars after and when all its member countries have approved and paid money in full since 2008.
Can the IMF sell gold to raise money?
In September of 2009, the member countries had passed a motion in a decision to sell over 400 tonnes of gold which accounts for a total of one-eighth of the IMF’s total gold holdings. This decision was passed to fund the IMF for more extended periods so that it could lend and help developing countries.