* G20 pledges will help IMF should euro zone crisis worsen
* Leading emerging nations agree to help boost IMF funds
* G20 promises to give emerging markets greater say
* Investors welcome funds but euro zone crisis still looms
By Lesley Wroughton and Jan Strupczewski
WASHINGTON, April 20 (Reuters) – 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.
Continued…
