IMF Could Introduce Credit Lines For Struggling Countries

Christine Lagarde and the eurozone

The International Monetary Fund could introduce new, six-month credit lines that would allow countries already struggling from shocks to borrow money, according to Bloomberg.

That’s the newest plan out of the Washington-based fund, which is looking to stave of global economic crisis stemming from problems in Europe.

The IMF already allows countries with reasonably stable financials to borrow money, but this plan would also give countries already receiving bailout aid access to the IMF loans.

The move would be most valuable to small countries, which could borrow up to five times their IMF contribution. It also catalyze debate about expanding the fund’s resources, which remain too small to bail out a country like Italy.

This proposal and others are likely to form the centre of debate at this week’s G20 meetings in Cannes.

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