April 20 - International Monetary Fund Managing Director Christine Lagarde announces members have agreed to put up more than $400 billion to more than double the IMF's war chest to fight back the European debt crisis. Karen Hendren reports.
IMF nations stood ready to commit at least $400 billion to bulk up the lending agency, a target its chief Christine Lagarde set to build a firewall against any future financial crisis. SOUNDBITE: CHRISTINE LAGARDE, MANAGING DIRECTOR, INTERNATIONAL MONETARY FUND (ENGLISH) SAYING: "I think I would like to begin by thanking publicly all members of the IMF that have contributed to developing this global firewall or this global umbrella as you will, which is as was just mentioned over $430 billion." That target is a doubling of the previous aid chest. BRICS nation Brazil wants to tie the cash to a pledge that the voting power of emerging markets like Brazil, China and Russia will increase at the IMF. But Brazil said that as a condition for funds… emerging powers want new pledges to recognize their fast-growing economic weight. They're frustrated over delays - particularly in the US - in implementing an agreement that lessens Europe's sway at the IMF and lifts China into the No. 3 voting slot. The IMF has warned that the euro zone's debt crisis presents the gravest risk to the global economic expansion, and financial markets worry that Spain and Italy may next require bailouts, following Greece, Ireland and Portugal. Karen Hendren, Reuters