Monday, October 8, 2018

Trump Administration Hinting at Increased Funding of IMF

So much for the Trump Administration fighting the worst kind of establishment crony globalism.

The U.S. government has left the door open for a US funding boost to the IMF, reports the Financial Times.

In a statement to the Financial Times ahead of the IMF’s annual meetings in Bali, Indonesia, where the Fund’s future lending capacity will be informally discussed, a US Treasury department spokesperson said the “current level” was “more than adequate to address the potential demand for its emergency financing”.

But he also noted that some of the IMF’s funding would expire in the period between 2020 and 2022 — a reduction in resources that would have to be closely examined. “[This ] will require a careful evaluation to ensure that the IMF has sufficient funds to fulfill its mission,” the US Treasury said.

Notes the Times:
The IMF has about $1tn in available reserves for lending, but more than half of that war chest is due to expire by 2022, depleting its resources unless members decide to put in new money or renew existing arrangements. 
This year, the Trump administration has been among the most enthusiastic supporters of the IMF’s $57bn loan package to Argentina— its largest in history — which has brought the IMF and the White House closer. 

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