The International Monetary Fund will sell bonds to raise funds to lend to struggling nations, the head of the organization said Saturday, in a victory for developing countries.
Emerging economies such as China, Brazil and India pushed for the move as an alternative to providing longer-term loans to the IMF. Those countries want greater voice in the institution before providing additional resources.
World leaders meeting three weeks ago in London pledged to boost an IMF emergency lending facility by $500 billion US, but finance officials meeting in Washington disagreed on how to best provide the funds.
In addition, Youssef Boutros-Ghali, chairman of the IMF’s policy setting committee, said IMF members agree there is a “break in the clouds” in the outlook for the global economy. He said the global economy should start to stabilize by the end of this year and recovery could kick in by the end of the first half of 2010.
