US Supportive of New IMF Credit Programs, Says Official

The HQ2 building of the International Monetary Fund in Washington. Photo by: Henrik Gschwindt de Gyor/IMF

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.

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  • Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.