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This is an archive article published on July 4, 1998
IMF running out of money for bailouts
Washington, July 3: The International Monetary Fund will run out of money and will not be able to cope with another financial crisis if it h...
Written by Press Trust Of India
July 4, 1998 12:00 AM IST
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Washington, July 3: The International Monetary Fund will run out of money and will not be able to cope with another financial crisis if it heeds to Russia8217;s request for another 10 to 15 billion in loans, the fund8217;s managing director Michel Camdessus has said.
quot;Our liquid reserves have shrunk to between 10 billion and 15 billion. That is not enough for a new crisis.quot; Camdessus told a German paper on Thursday.
quot;If we run out of money, this would worsen a very unstable global situation and mean a serious danger for the world economy,quot; he added.
A request by the Clinton administration to pay the IMF 18 billion for a capital increase and the US contribution to the new arrangements to borrow is stalled in the house of representatives.
Many members have even criticised the IMF as being too secretive and giving bad advice but speaker Newt Gingrich and other Congressional leaders aretrying their best to overcome the opposition.
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