Connect to share and comment

Japan, Sweden, Denmark offer $77 billion in loans to IMF

Japan is the first country outside the euro zone to contribute to the IMF's efforts to fight the euro zone debt crisis.

ChristinelagardeEnlarge
International Monetary Fund Managing Director Christine Lagarde at a G20 finance ministers and central bank governors meeting event in Mexico City, on February 25, 2012. (Ronaldo Schemidt/AFP/Getty Images)

Who can the IMF turn to when it needs a loan? Japan, Sweden and Denmark but not the US.

Japan on Tuesday became the first non-European country to promise the world’s lender a loan to help it battle the euro zone debt crisis.

Japanese Finance Minister Jun Azumi hopes the extra $60 billion will encourage other countries to help out as well, Reuters said

"It is important to strengthen IMF funding and pave the way for ensuring an end to the crisis not only for the euro zone but also for Japan and Asian countries," Azumi told news agencies including Reuters at a news conference.

Sweden and Denmark pledged a combined $17 billion in additional loans to the International Monetary Fund, which is seeking more money to help it rescue the euro zone from a debt crisis threatening global economic growth.

The IMF, the lender of last resort for the world’s governments, had been trying to raise an additional $600 billion to aid the innocent casualties of euro zone debt crisis but IMF Managing Director Christine Lagarde suggested the fund may be able to get by on less. 

The IMF has so far gotten pledges of $200 billion in loans from euro zone countries, the Wall Street Journal said.

The US - the IMF's largest shareholder - isn't planning to contribute, but Azumi told the Wall Street Journal Japanese and US officials have been talking on the phone almost every day.

http://www.globalpost.com/dispatch/news/regions/europe/120417/japan-sweden-denmark-77-billion-loans-imf