IMF revamps lending practices

IMF revamps lending practicesWashington - The International Monetary Fund will revamp its lending policies to encourage more countries to make use of its emergency funds in the current economic crisis, the financial watchdog announced Tuesday.

The retooling would provide faster access to IMF loans and with less of the usual policy conditions that have scared off some countries. Governments including Singapore and South Korea have rejected IMF funds despite facing massive budget shortfalls.

These reforms represent a significant change in the way the fund can help its member countries which is especially needed at this time of global crisis," IMF Managing Director Dominique Strauss-Kahn said in a statement.

The changes include a new "flexible credit line" that will be available to all of its 185 members.

The United States and others are pushing for a dramatic expansion of the IMF's resources to help developing countries that do not have the resources to weather the financial crisis.

The US, European Union and Japan have each pledged 100 billion dollars in additional funds for the IMF ahead of a summit of Group of 20 leaders in London next week. (dpa)

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