IMF Considering Allowing Countries to Borrow 5 Times Quota Limit

Bloomberg News reported on Friday that the International Monetary Fund is considering allowing members to borrow as much as five times the quota limit they have with the organization.

The move was made in an effort to help countries against the financial market crisis, Bloomberg reported, citing an anonymous source within the organization.

Should the deal go through, central banks will be allowed to supplement the IMF's resources, as expressed by the Bank of Japan just weeks ago.

Under the program, Bloomberg suggests that South Korea could borrow up to $21.8 billion, five times the $4,4 billion it contributes on an annual basis, while Mexico could receive a 23.5 billion loan and Brazil a 22.6 billion loan.

The proposal was apparently put forth just two says ago by Managing Director of the IMF, Dominique Strauss-Kahn, Bloomberg reported.

By Erik Kevin Franco and edited by Stephen Huebl
©CEP News Ltd. 2008