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In 2008 the I.M.F. was = suddenly called back into action after years of declining relevance when = financial crises began to swamp struggling countries. The fund brokered = rescue packages for Pakistan, Iceland, Hungary and Ukraine -- moves that = thrust it into the thick of a global crisis after a frustrating period = in which it was a bystander.
In late January 2009, the I.M.F. = reduced its estimate for global growth for the year to just 0.5 percent, = the lowest level in more than 60 years.
On March 1, the = leaders of Germany, Britain, France and other European nations called = for the resources of the I.M.F. to be doubled, to $500 billion, to help = head off new problems in countries already hit hard by the global = economic and financial crisis.
U.S. Treasury Secretary = Timothy F. Geithner, who once worked at the fund, has called for its = financial resources to be expanded by $500 billion, effectively tripling = its lending capacity to distressed countries and cementing its status as = the lender of last resort for much of the world.
Japan and = the European Union have each pledged $100 billion; the United States has = signaled it will contribute a similar sum. With more countries slipping = into crisis by the week, there is general agreement that the fund needs = additional resources.
Eyeing a contagion that is rapidly = spreading to Eastern Europe and even countries that use the euro, the = leaders highlighted the crisis-prevention role of the monetary fund, an = institution whose relevance to the global economy seemed in doubt only a = few years ago. The fund lent billions of dollars to crisis-torn = economies in Indonesia, Mexico and Argentina -- and was later shunned by = countries for the strict condition that it attached to = bailouts.
The I.M.F. said on March 25 that it would come to = the rescue of Romania as part of a package of 20 billion euros, or $27 = billion, to help the Eastern European country weather the financial = crisis. Romania joins Serbia, Belarus and Latvia among European = countries seeking help since the global economy slowed sharply in 2008. = The economic crisis led investors to sell the currencies of smaller = countries in a flight to dollars, euros and yen.
Since 2008, = the I.M.F. has made more than $55 billion in loans. It is streamlining = the process for making loans and relaxing its requirements, hoping to = counter the resentment that built up against it during past crises = because of its stringent demands.
The Obama administration = has made fortifying the I.M.F. one of its primary goals for the April = meeting of the Group of 20, which includes leading industrial and = developing countries and the European Union. The world leaders gathered = there pledged $750 billion to shore up the fund's ability to lend, plus = another $250 billion in so-called special drawing rights, although = critics raised questions later about how much of the money was new and = how many of the pledges would actually be delivered.
On April = 21, 2009, the fund delivered its annual global stability report. It = estimated that financial institutions would have to write down an = estimated $2.7 trillion in loans and securities originating in the = United States from 2007 to 2010. That estimate is up from $2.2 trillion = in the fund's report in January, and $1.4 trillion last = October.
The financial crisis is likely to be deep and long = lasting, the report said, noting that global financial stability has = deteriorated further since its October report, especially in emerging = markets, particularly in Europe, where banks face more write-downs and = may require fresh equity, even as businesses seek to refinance debt. = Banks have raised about $900 billion in fresh capital since the crisis = began, the fund said, but that is far outweighed by $2.8 trillion in = credit-related losses. The fund estimates that the banks have already = taken about one-third, or $1 trillion, of those = write-downs.
The report also illustrates the uneven pace of = the response to the crisis. The fund estimates that in the United = States, for example, banks reported $510 billion in write-downs by the = end of 2008 and face an additional $550 billion in 2009 and 2010. In the = euro zone, banks reported just $154 billion in write-downs by the end of = last year and still face $750 billion. British banks are in somewhat = better shape: having written down $110 billion, they face $200 billion = more, the fund = said.
 
 
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Founded at the end of World War II to promote global economic = stability, the=20 International Monetary Fund keeps a watch on the currency, trade and = economic=20 policies of its 184-member nations and makes nonbinding recommendations = for=20 improvement. The fund also provides low-cost loans to countries in = financial=20 need on the condition that borrowers undertake economic policy changes = like=20 adjusting their balance of payments or reducing inflation.
In 2008 the I.M.F. was suddenly called back into action after years = of=20 declining relevance when financial crises began to swamp struggling = countries.=20 The fund brokered rescue packages for Pakistan, Iceland, Hungary and = Ukraine --=20 moves that thrust it into the thick of a global crisis after a = frustrating=20 period in which it was a bystander.
In late January 2009, the I.M.F. reduced its estimate for global = growth for=20 the year to just 0.5 percent, the lowest level in more than 60 = years.
On March 1, the leaders of Germany, Britain, France and other = European=20 nations called for the resources of the I.M.F. to be doubled, to $500 = billion,=20 to help head off new problems in countries already hit hard by the = global=20 economic and financial crisis.
U.S. Treasury Secretary Timothy F. Geithner, who once worked at the = fund, has=20 called for its financial resources to be expanded by $500 billion, = effectively=20 tripling its lending capacity to distressed countries and cementing its = status=20 as the lender of last resort for much of the world.
Japan and the European Union have each pledged $100 billion; the = United=20 States has signaled it will contribute a similar sum. With more = countries=20 slipping into crisis by the week, there is general agreement that the = fund needs=20 additional resources.
Eyeing a contagion that is rapidly spreading to Eastern Europe and = even=20 countries that use the euro, the leaders highlighted the = crisis-prevention role=20 of the monetary fund, an institution whose relevance to the global = economy=20 seemed in doubt only a few years ago. The fund lent billions of dollars = to=20 crisis-torn economies in Indonesia, Mexico and Argentina -- and was = later=20 shunned by countries for the strict condition that it attached to = bailouts.
The I.M.F. said on March 25 that it would come to the rescue of = Romania as=20 part of a package of 20 billion euros, or $27 billion, to help the = Eastern=20 European country weather the financial crisis. Romania joins Serbia, = Belarus and=20 Latvia among European countries seeking help since the global economy = slowed=20 sharply in 2008. The economic crisis led investors to sell the = currencies of=20 smaller countries in a flight to dollars, euros and yen.
Since 2008, the I.M.F. has made more than $55 billion in loans. It is = streamlining the process for making loans and relaxing its requirements, = hoping=20 to counter the resentment that built up against it during past crises = because of=20 its stringent demands.
The Obama administration has made fortifying the I.M.F. one of its = primary=20 goals for the April meeting of the Group of 20, which includes leading=20 industrial and developing countries and the European Union. The world = leaders=20 gathered there pledged $750 billion to shore up the fund's ability to = lend, plus=20 another $250 billion in so-called special drawing rights, although = critics=20 raised questions later about how much of the money was new and how many = of the=20 pledges would actually be delivered.
On April 21, 2009, the fund delivered its annual global stability = report. It=20 estimated that financial institutions would have to write down an = estimated $2.7=20 trillion in loans and securities originating in the United States from = 2007 to=20 2010. That estimate is up from $2.2 trillion in the fund's report in = January,=20 and $1.4 trillion last October.
The financial crisis "is likely to be deep and long lasting," the = report=20 said, noting that global financial stability has deteriorated further = since its=20 October report, especially in emerging markets, particularly in Europe, = where=20 banks face more write-downs and may require fresh equity, even as = businesses=20 seek to refinance debt. Banks have raised about $900 billion in fresh = capital=20 since the crisis began, the fund said, but that is far outweighed by = $2.8=20 trillion in credit-related losses. The fund estimates that the banks = have=20 already taken about one-third, or $1 trillion, of those write-downs.
The report also illustrates the uneven pace of the response to the = crisis.=20 The fund estimates that in the United States, for example, banks = reported $510=20 billion in write-downs by the end of 2008 and face an additional $550 = billion in=20 2009 and 2010. In the euro zone, banks reported just $154 billion in = write-downs=20 by the end of last year and still face $750 billion. British banks are = in=20 somewhat better shape: having written down $110 billion, they face $200 = billion=20 more, the fund said.
The I.M.F. says that it sees glimmers of = stabilization in the=20 financial system, but that =93continued decisive and effective action=94 = will be=20 needed.
April 22, 2009businessNewsEuropean leaders called for a doubling of the = resources of the=20 International Monetary Fund to help head off problems in countries hit = by the=20 global financial crisis.
February 23, = 2009worldNewsPresident Nicolas Sarkozy of France has endorsed = putting a=20 prominent member of the Socialist Party opposition in charge of the=20 International Monetary Fund.
July 9, = 2007worldNewsThe agreement ends a dispute with Britain and the = Netherlands=20 that had held up aid payments from the International Monetary = Fund.
January 1, 2010=20France is showing the way in the economic crisis, but = its=20 anti-segregation and anti-discrimination policies are seriously = flawed.
December 19, 2009=20The decision by the International Monetary Fund = reflects=20 frustration over the inability of the country=92s politicians to get the = budget=20 under control.
December 11, 2009=20=93We have to be sure that the recovery is final,=94 = said Dominique=20 Strauss-Kahn, managing director of the International Monetary = Fund.
November 25, 2009=20Gordon Brown of Britain told G-20 finance ministers = that the=20 world needed a system to force banks, not taxpayers, to cover future=20 bailouts.
November 8, 2009=20The International Monetary Fund has sold 200 tons of = gold to=20 the Reserve Bank of India for $6.7 billion, executing half of a = long-planned=20 bullion sale that could slow the rising price of gold.
November 4, 2009=20The new outlook from the International Monetary Fund = reflects=20 the region=92s rapid rebound from the downturn in recent = months.
October 30, 2009=20An orderly unwinding of global imbalances is = fundamental to=20 achieve sustainable economic growth.
October 29, = 2009=20Dominique Strauss-Kahn of the International Monetary = Fund said=20 the Group of 7 had been all talk. It issued what may be one of its last=20 statements.
October 5, 2009=20The protester missed hitting Dominique Strauss-Kahn = at the end=20 of the director=92s speech on Thursday in the lead-up to International = Monetary=20 Fund and World Bank meetings in Turkey.
October 2, = 2009=20SEARCH 2098 ARTICLES ABOUT THE INTERNATIONAL MONETARY = FUND=20 :
What the United States and other countries can do to = stem=20 investor panic.
A list of resources from around the Web about the = International Monetary Fund as selected by researchers and editors of = The New=20 York Times.
Click on a photo to view related = article
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