IMF makes huge borrowing from Italy
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The International Monetary Fund (IMF) and the Bank of Italy have signed an agreement to provide the Fund with up to 8.11 billion pounds (about 11.17 billion U.S. dollars), according to a statement released by the IMF.
The IMF said that the agreement is part of a commitment made by the European Union in March 2009 to contribute up to 75 billion pounds (then equal to about 100 billion U.S. dollars) to support the IMF's lending capacity. The European Union has since committed an additional 50 billion pounds to the Fund's expanded New Arrangements to Borrow.
The signing of the agreement with the Bank of Italy means the IMF can now add these resources to those already available through agreements signed with other members.
The Washington based international institution noted that these agreements contribute toward an increase in the IMF's resources that was requested in April 2009 by Group of 20 (G20) leaders and the International Monetary and Financial Committee in order to provide timely and effective balance of payments assistance to its members in the current crisis.
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