(1888PressRelease)
November 05, 2008 - London, The fund is meant for economies that have a good economic track record but may be having difficulties accessing credit. A maximum of $100bn would be available for the purpose, the IMF officials said.
The move follows a request by a Group of 24 developing economies- including countries from Latin America, Asia and Africa, for such a fund.
"The ongoing turmoil in global capital markets has led to significant liquidity difficulties for some emerging market countries, even those that have maintained sound macroeconomic frameworks," the IMF Managing Director Dominique Strauss-Kahn said.
"The IMF will respond to this crisis with all the necessary financing," he added. "We are prepared to use our own resources and to work with others to generate additional resources to make sure that countries have the money they need to restore confidence and maintain stability."
The fund will be available to a set of pre-approved countries that will be able to access five times of their IMF quota- the IMF quota is broadly decided by the size of the country’s economy. During normal circumstances countries are able to access about three times their IMF quota.
The IMF however, did not reveal the names of the countries eligible for the funding and maintained that applications for the funding would remain confidential.
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