Leading world economies on Friday pledged $430 billion in new funding for the International Monetary Fund, more than doubling its lending power in a bid to protect the global economy from the euro-zone debt crisis.
The promised funds from the Group of 20 advanced and emerging economies aim to ensure the IMF can respond decisively should the debt problems that have engulfed three euro zone countries spread and threaten a fragile global recovery.
“This is extremely important, necessary, an expression of collective resolve,” IMF Managing Director Christine Lagarde said. “Given the increase that has just taken place, we are north of a trillion dollars actually. So I was a bit mesmerized by the amount.”
The $1 trillion figure includes both the IMF’s existing and newly won resources, as well as loans already committed.