19 September,2009 10:02 AM IST | | IANS
The International Monetary Fund (IMF) will sell one-eighth of its gold reserves and the money raised will in part be used to assist low-income countries, the IMF said.
"The Board approved the sale of up to 403.3 metric tonnes, or about one-eighth of the Fund's total gold holdings. The proceeds will help finance a new income model for the IMF, making the 186-member institution less dependent on its lending revenue to cover expenses," the global financial institution said.
"Part of the money raised will also help boost financing for concessional lending to low-income countries," it said, adding that the sales will be conducted so as not to disrupt the international gold market.
Managing Director Dominique Strauss-Kahn said he is "delighted that the executive board has given its overwhelming backing to limited gold sales to put the financing of the IMF on a sound long-term footing, and to enable us to step up much-needed concessional lending to the poorest countries."
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