Several Countries Provide Funding to IMF for Poorer Nations

• Author: International Monetary Fund

France, the United Kingdom, and Spain announced commitments to additional funding at the IMF-World Bank Annual Meetings in Istanbul. Korea and several other countries have also committed new contributions.

* France and the United Kingdom announced during the Meetings their intention to contribute $2 billion each as loan resources by lending Special Drawing Rights (SDRs).

* Korea will provide SDR 500 million ($750 million) in loans and SDR 8.8 million ($13.2 million) in subsides.

* Spain will provide SDR 405 million ($608 million) in loans and SDR 9 million ($13.5 million) in subsidies.

Donors to finance subsidy

The IMF has cut interest rates on its concessional loans to zero until the end of 2011 but needs money from donors to finance the subsidy and the increased lending.

IMF Managing Director Dominique Strauss-Kahn...