IMF distributes $1.1b reserves to boost lending to low-income countries

The International Monetary Fund (IMF) says October 13, 2012 that it will distribute about $1.1 billion in reserves attributed to windfall gold sales profits to its members in order to boost its concessional lending capacity for low-income countries during the global crisis.

The distribution, according to the IMF is a key element of a 2009 plan to boost concessional lending capacity to $17 billion over five years to 2014.

“This is a wonderful achievement that demonstrates our members’ determination to ensure the IMF has the wherewithal to support its low-income members through this crisis,” IMF Managing Director Christine Lagarde stated.

“For many countries,” Lagarde said “this process has involved complex legal or legislative steps, and it is a tribute to our membership that we have arrived at the required level in just a few months.”

The IMF said it sold 403.3 metric tonnes of gold in 2009-10 as part of a plan to ensure the long-term financing of the IMF’s day-to-day operations through the creation of an endowment using anticipated gold sales profits of some SDR 4.4 billion ($6.8 billion).

By Ekow Quandzie