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World Bank Is Going Bust

THE world’s bank — the International Monetary Fund — is going BUST and must be bailed out, Gordon Brown warned last night.

The IMF has only got £150billion left, it emerged — with dozens of countries queuing up for major handouts to keep afloat.

The PM urged cash-rich China and oil sheikhs to give hundreds of billions so the IMF can keep giving out funds — and stop it going bust.

Mr Brown said: “This may not be enough. It is becoming increasingly clear to me we cannot delay and we now need substantial additional resources in addition to the $250billion the IMF already has available.

“The big surplus countries — those that have got big reserves — are in a position to help most and we will be urging them to do so.”

The IMF’s role is to help countries stave off bankruptcy. It handed over £16.5billion to Ukraine this week and Hungary is also desperate for funds.

Dozens of others — especially in eastern Europe — will need big bailouts because of the global slump.

World leaders fear a Russian takeover move unless they are able to survive. China is cash-rich, having spent ten years banking profits in a special fund rather than investing them abroad.

Oil-rich countries in the Gulf are also able to plough funds into the IMF. The UK supplies five per cent of IMF cash, compared with China’s 3.7 per cent.

Last night Mr Brown held talks in Paris with French President Nicolas Sarkozy, who backed the PM in urging the reshaping of the IMF.

Mr Sarkozy said: “We will work hand in glove to get out of this terrible crisis.”

Mr Brown said: “Our first priority is to stop the contagion to other countries, including in eastern Europe, where there are problems emerging and action must be taken.”

Source


Added: Oct-29-2008 
By: drynwhyl
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Tags: imf, international, monetary, fund, bank, bust, credit, crisis
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