IMF Lodges $250 Billion to Cushion Recession Impact

The International Monetary Fund (IMF) on Thursday said that it will release some $250 billion into the coffers of member nations that were greatly affected by the recession to help them recover from haunting blows of the crisis.

According to reports, the $250 billion funding is part of a rarely used tool of the IMF, also known as the Special Drawing Rights (SDR), which was approved by the board of governors. The amount would be dissected to some 186 member countries to provide liquidity in the battered economy.

The supplemental amount injected to each country’s foreign exchange reserves will give them a more stable and faster growth as the effects of the recession starts to bottom down.

The board of governors is composed of the Top 20 leaders. The group was also responsible for the $1.1 trillion assistance allocation last April.

Aside from the approved $250 billion, the G20, as part of its multilateral commitment, also said that they will soon come up with another $750 billion to help more countries combat the crisis. The amount is the largest SDR in six-decade history of the IMF.

Meanwhile, the board of governors disclosed that the disbursement of the amount will take effect on August 28, a month earlier than what was expected.

The IMF, on the other hand, said that they have no bearing on how the members will spend their allocations, saying that they can even choose to sell the amount to other members in exchange for even bigger currencies.