IMF taps eight billion dollars for low-income countries

17th September 2010, Comments 0 comments

The International Monetary Fund announced Friday it had reached a deal with four economic powers to provide eight billion dollars worth of funding to low-income countries.

"The agreements... expand the IMF's capacity to help low-income countries hit hard by the current global crisis," the Washington-based body said.

The deals were reached with authorities in Japan, Britain, France and China.

Japan was the biggest contributor to the package, pledging 2.7 billion dollars via purchase agreements that give the fund leverage for lending. Britain pledged two billion dollars and the Bank of China pledged 1.2 billion.

The Bank of France entered a loan agreement for two billion dollars.

The announcement came days before a United Nations summit expected to highlight the lack of progress toward the so-called Millennium Development Goals.

The goals -- which have been further hampered by the financial crisis -- include cutting abject poverty by half, cutting the number suffering from hunger by half, securing universal primary education and reducing child mortality by two thirds by the year 2015.

© 2010 AFP

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