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The International Monetary Fund (IMF) is planning to increase its precautionary reserves on account of rising global risks, the organization's latest report says.

14 May 2012

*** This is an updated and corrected version. The IMF has NOT stated that it plans to buy $2.3 billion of gold as reserves. INSTEAD, the IMF has only stated that it plans to increase its reserves

NEW YORK (Commodity Online): The International Monetary Fund (IMF) is planning to increase its precautionary reserves on account of rising global risks, the organization's latest report says.

“The Fund is facing increased credit risk in light of a surge in program lending in the context of the global crisis. While the Fund has a multi-layered framework for managing credit risks, including the strength of its lending policies and its preferred creditor status, there is a need to increase the Fund’s reserves in order to help mitigate the elevated credit risks”, the IMF report states

“Directors supported an increase in the medium-term indicative target for precautionary balances to SDR 20 billion in light of the increase in total Fund credit and commitments since the last review in 2010”, the report adds

IMF's borrowers include Eurozone countries like Greece and Portugal. Greece is IMF's biggest borrower and the nation is currently caught in a political deadlock that seems bent on denying itself the much needed bailout fund.

Countries like Spain is also officially in recession after its first quarter GDP contracted. Other nations in the Eurozone region is also showing increased signs of slow manufacturing activity and economic growth.


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COMMENTS (4)
HULA
15 May 2012
So this is where that jp morgan chase money went to, these guys are just so crooked it's not even funny.
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I have a pulse
15 May 2012
Planning to buy? I see the helmeted crowd wants to chase price. "increased credit risk" ? Now there's an understatement. "strength of its lending policies" ? Thanks for the laugh. "preferred creditor status" ? WTF Funny how banks and their proxies "hold" gold while pretending to own it. Funny how so many "hold" the SAME gold. Oh, those foolish Greeks, "bent on denying much needed bailout funds" to EU banks and bond holders. What, is London getting a bit too hot to hold that Libyan gold? Yes... the IMF is w i s e. lol
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Name
14 May 2012
How much did the IMF sell that 200 tons of gold to India for? $1050! Two years later and they are buying it back at $1560! And we trust these guys with 'managing' the economy!
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Patriot001
14 May 2012
So, while the likes of Buffet, Munger, and Gates tell us that gold is a barbarous relic, the IMF quietly accumulates more (along with China). I think I get it...
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