Drive for IMF Funds Caught in Global Power Shift

Drive for IMF Funds Caught in Global Power Shift 
Published: Saturday, 14 Apr 2012 | 7:24 AM ET Text Size
By: Reuters

Tensions among some of the world's leading economies have boiled up over a plan to raise new resources for the International Monetary Fund to contain the euro zone debt crisis, and a quest by emerging economies to win more say in the global lender.

World financial leaders gathering in Washington next week will focus on proposals for countries to contribute more money to the IMF so it is better prepared in case of fallout from any further escalation of Europe's debt problems.

Emerging market countries like China, Brazil and Russia are willing to provide more money for the IMF, but they want something in return: greater voting power.

http://www.cnbc.com/id/47049024

IMF warns of oil risk from Iran

IMF warns of oil risk from Iran

AFP - IMF chief Christine Lagarde warned Tuesday that crude oil prices may spike by up to 30 percent if Iranian supplies were disrupted, causing "serious consequences" for the global economy.

The standoff between Iran, the world's second-largest supplier of oil, and the West over the Islamic Republic's nuclear program is seen as a flashpoint that could sharply increase world crude prices.

"Clearly it would be a shock to economies if there was a major shortage of exports of oil out of Iran, it would certainly drive up prices for a period of time," Lagarde told reporters in New Delhi, wrapping up a two-day visit
http://www.france24.com/en/20120320-imf-warns-oil-risk-iran

Now the IMF Needs A Bailout

Christine Lagarde: IMF may need billions in extra funding
Louise Armitstead and Jonathan Russell8:04PM BST 25 Sep 2011

Christine Lagarde has signalled that the International Monetary Fund (IMF) may have to tap its members – including Britain – for billions of pounds of extra funding to stem the European debt crisis.

The head of the IMF has warned that its $384bn (£248bn) war chest designed as an emergency bail-out fund is inadequate to deliver the scale of the support required by troubled states.

In a document distributed to the IMF steering committee at the weekend, Ms Lagarde said: "The fund's credibility, and hence effectiveness, rests on its perceived capacity to cope with worst-casescenarios. Our lending capacity of almost $400bn looks comfortable today, but pales in comparison with the potential financing needs of vulnerable countries and crisis bystanders."

http://www.telegraph.co.uk/finance/financialcrisis/8788223/Christine-Lagarde-IMF-may-need-billions-in-extra-funding.html

IMF: World economy enters 'dangerous new phase'

IMF: World economy enters 'dangerous new phase'
IMF says global economy in 'dangerous new phase,' slashes growth forecasts for US and Europe

WASHINGTON (AP) -- The world economy has entered a "dangerous new phase," according to the chief economist of the International Monetary Fund. As a result, the international lending organization has sharply downgraded its economic outlook for the United States and Europe through the end of next year.
The IMF expects the U.S. economy to grow just 1.5 percent this year and 1.8 percent in 2012. That's down from its June forecast of 2.5 percent in 2011 and 2.7 percent next year.

To achieve even that still-low level of growth, the U.S. economy would need to expand at a much faster rate in the second half of the year than its 0.7 percent annual pace in the first six months.

Most economists expect growth of between 1.5 percent and 2 percent in the final two quarters. Though an improvement, it wouldn't be enough to lower the unemployment rate. The rate has been 9 percent or higher in all but two months since the recession officially ended more than two years ago.

http://finance.yahoo.com/news/IMF-downgrades-outlook-for-US-apf-1240337037.html?x=0

Police: IMF head picked out of lineup in sex case

Police: IMF head picked out of lineup in sex case

By COLLEEN LONG and ANGELA CHARLTON, Associated Press – Sun May 15, 6:10 pm ET

NEW YORK – Dominique Strauss-Kahn's reputation with women earned him the nickname "the great seducer," and not even an affair with a subordinate could knock the International Monetary Fund leader off a political path pointed in the direction of the French presidency. All that changed with charges that he sexually assaulted a maid in his hotel room, a case that generated shock and revulsion, especially in his home country.

Police said the maid picked Strauss-Kahn out of a lineup. Unless the charges are quickly dropped, they could destroy his chances in a presidential race that is just starting to heat up.

http://news.yahoo.com/s/ap/20110515/ap_on_re_us/imf_head_assault

Stuck on Stupid : US lacks credibility on debt, says IMF

US lacks credibility on debt, says IMF

By Chris Giles and James Politi in Washington
Published: April 12 2011 19:15 | Last updated: April 12 2011 19:15

The US lacks a “credible strategy” to stabilise its mounting public debt posing a small but significant risk of a new global economic crisis, says the International Monetary Fund.

In an unusually stern rebuke to its largest shareholder, the IMF said the US was the only advanced economy to be increasing its underlying budget deficit in 2011 at a time when its economy was growing fast enough to reduce borrowing.

http://www.ft.com/cms/s/0/dc1aadea-652e-11e0-b150-00144feab49a.html#ixzz1JLXw8WWX

US Ready to Back Bigger EU Stability Fund: Official

US Ready to Back Bigger EU Stability Fund: Official
The United States would be ready to support the extension of the European Financial Stability Facility via an extra commitment of money from the International Monetary Fund, a U.S. official told Reuters on Wednesday.

"There are a lot of people talking about that. I think the European Commission has talked about that," said the U.S. official, commenting on enlarging the 750 billion euro ($980 billion) EU/IMF European stability fund. "It is up to the Europeans. We will certainly support using the IMF in these circumstances."

"There are obviously some severe market problems," said the official, speaking on condition of anonymity. "In May, it was Greece. This is Ireland and Portugal. If there is contagion that's a huge problem for the global economy."

The remarks foreshadow a visit to Europe this week by a U.S. Treasury envoy who is expected to visit Berlin, Madrid and Paris to hold talks on the ramifications of the debt crisis.

more: http://www.cnbc.com/id/40454469

Head of IMF Proposes New Reserve Currency

IMF's Strauss-Kahn suggests IMF may one day provide global reserve asset
By HARRY DUNPHY Associated Press Writer
WASHINGTON February 26, 2010 (AP)

Dominique Strauss-Kahn, the head of the International Monetary Fund, suggested Friday the organization might one day be called on to provide countries with a global reserve currency that would serve as an alternative to the U.S. dollar.

"That day has not yet come, but I think it is intellectually healthy to explore these kinds of ideas now," he said in a speech on the future mandate of the 186-nation Washington-based lending organization.

Strauss-Kahn said such an asset could be similar to but distinctly different from the IMF's special drawing rights, or SDRs, the accounting unit that countries use to hold funds within the IMF. It is based on a basket of major currencies.

He said having other alternatives to the dollar "would limit the extent to which the international monetary system as a whole depends on the policies and conditions of a single, albeit dominant, country."

ttp://abcnews.go.com/Business/wireStory?id=9958995