International Monetary Fund considers raising cash in the bond markets
In a move which has not been seen before, the International Monetary Fund (IMF) is today considering tapping the worldwide debt markets for further funding. While it seems inevitable that the IMF will see significant funding increases in the short to medium term, with the G 20 Summit set to discuss the figures in question, there are concerns about the possibility of pushing borrowing costs higher if the IMF were to enter the market.
This is the first time that the IMF has even considered tapping the international debt markets for additional finance but with European counterparts struggling to balance their own budgets this may be the only option. The IMF is looking to raise significant funding in order to provide low interest loans to struggling governments around the world. However, the World Bank is suggesting that the way ahead for such associations is private funding which would have little impact on the overall international debt market.
As economies around the world continue to suffer there are some concerns about how exactly the IMF will be funded in the future and who will have to stump up the payments. The UK government for one is not in a position to go out on a limb and make a significant contribution to the fight.
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