The International Monetary Fund (IMF) said Wednesday it will issue bonds for the first time in its 60-year history in an effort to win contributions from emerging economies like China, Brazil and Russia.
The International Monetary Fund (IMF) said Wednesday it will issue bonds for the first time in its 60-year history in an effort to win contributions from emerging economies like China, Brazil and Russia.
The new money-making scheme comes as the IMF has dramatically boosted its role as an emergency lender during the global financial crisis, which has tipped the world into its first recession since World War II.
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Leaders of the Group of 20 (G20) nations - a bloc of wealthy and emerging powers - agreed in March to triple the IMF's lending resources to $750 billion to help governments facing serious budget crunches.
China has already said it will invest $50 billion, while Russia and Brazil have pledged $10 billion each through the new bond offer. It would mark the first time developing countries have made contributions to the IMF.
Managing Director Domnique Strauss-Kahn said the new bonds would be a "secure investment" for the IMF's 186 members countries. It showed the IMF is committed to "tackling head-on the effects of the global financial and economic crisis."
The bonds will be issued in the IMF's own currency, known as special drawing rights, which is based on a basket of currencies made up of the dollar, euro, yen and British pound. The bonds will be issued for a maximum of five years.
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