The U.S. supports the development of new types of International Monetary Fund credit programs, according to a senior U.S. official.
The Obama administration is supportive of the “idea that there’s a need to refresh the fund’s tool kit,” the official, who requested anonymity, said, as quoted by The Wall Street Journal.
The remarks come as IMF begins developing new lending programs with fewer conditions than what it currently requires. WSJ notes that the new line of credit programs will expand the fund’s lending portfolio and increase access to IMF resources.
The U.S. official’s comments also follow the announcement of IMF Managing Director Dominique Strauss-Kahn on his vision to expand IMF’s resources to up to USD1 trillion under an improved quota system.
“It’s certainly going to be important to re-examine the likely demand for fund resources, taking into account the evolution in global financial markets and potential problems, and also the instruments the fund will be using,” the official said, while noting that talks about reforming IMF’s quota system are still in their early stages.