IMF May Create Credit Line for Countries Facing "Shocks"

[marmar]

It's as if Naomi Klein wrote the script......



(Bloomberg) The International Monetary Fund may create a six-month credit line for countries facing shocks, officials from Group of 20 governments and IMF said, as the European debt crisis rocks global financial markets.

The amount would be capped at five times a nation’s contribution to the Washington-based IMF, known as a quota, making the credit line best suited for smaller countries, the people said. It is likely to be endorsed at a meeting of G-20 leaders this week in Cannes, France, where European nations will seek financial support from other members, said the three officials, who declined to be identified because the plan hasn’t been made public.

The instrument would be the latest in a set of IMF tools intended to increase liquidity as Europe’s crisis threatens to spread beyond Greece. It could be used as part of a broader international package to aid larger economies such as Spain, with IMF participation serving to reassure other creditors, said Bessma Momani, a political science professor at the University of Waterloo in Canada.

“The worry of most of these creditor countries is, ‘Who’s watching?’ said Momami, who specializes in the IMF and its policies. “This is in a sense a demand of creditor countries -- - Russia, China, the Gulf countries -- that before going to the G-20 there is some sort of confidence-building measure that the IMF will not let this go.” She said the line could also be used by smaller countries such as Egypt or Tunisia to meet short-term cash needs. ............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-11-01/imf-may-create-6-month-credit-line-for-countries-facing-shocks.html

[Name removed]

1. Deleted message

Message removed by moderator. Click here to review the message board rules.

[onethatcares]

2. if you deposit that million dollars into one of my virtual banks

I'll leverage it to 100 people so they all have a virtual 100K and we can buy stock with it and become job cremators. Wadda you think of that?

[jwirr]

3. I am more worried about the conditions they require for this credit

than I am about the banks failing. Is this just another game to let the corporations take over? When are they going to realize they are part of the bankster scheme that has destroyed our world economy? They are still playing the disaster capital trickle down sh-t even after most of the world knows it has failed.

[KamaAina]

4. So now the PIIGS countries are going to be treated like the developing world?

Ouch.