Switzerland offers USD 10 billion to IMF

9th April 2009, Comments 0 comments

The Swiss government joins larger effort to strengthen the International Monetary Fund.

ZURICH - The Swiss government decided Wednesday to join efforts to support the International Monetary Fund by granting it an additional USD 10 billion (CHF 11.4 billion, EUR 7.6 billion).

The government said in a statement that the IMF's focus shifted from its role as observer to that of a financing and coordination body in times of crisis.

"Due to the extent of the global economic and financial crisis, steps are required to ensure that the IMF will have sufficient resources to support its member states," it added.

The funding, part of an effort by the Group of 20 countries earlier in April to increase the IMF's resources to USD 750 billion, requires parliamentary approval.

IMF managing director Dominique Strauss-Kahn welcomed the move as part of coordinated efforts to limit the global crisis.

"This important step demonstrates Switzerland’s commitment to the multilateral response to the economic crisis, including an increase in the IMF’s lending capacity," Strauss-Kahn said in a statement from the Washington-based institution.

"It will contribute significantly to strengthening the financial system by increasing confidence that the IMF’s resources will be sufficient to meet the financing needs of its member countries."

AFP / Expatica

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