G-20 unlikely to agree on IMF funding

WASHINGTON - Agence France-Presse

Christine Lagarde’s IMF is seeking to raise a $500 billion bailout fund. REUTERS photo

The G20 group is unlikely to reach a consensus on boosting the International Monetary Fund’s lending capacity at a meeting in Mexico later this month, the country’s finance minister said.

“It’s unlikely that in February we will reach a consensus, especially on the amount, but it is true that we need greater liquidity and to reinforce the IMF,” Jose Antonio Meade said at a forum on Feb. 8 organized by Bloomberg.

The IMF said in January it was seeking to increase its lending capacity by up to $500 billion to confront the debt crisis in Europe.

But Meade said it was “premature” to set a firm amount, as the mechanisms of the proposed boost in funding remained unclear.

He said the situation would be clearer when the G20 held a full summit in June in the Pacific coast town of Los Cabos.

“Things will be clearer because the G20 is a forum to seek political consensus and (the presidents) will be able to illuminate the road ahead.”

Meade is to chair a meeting of G20 finance ministers and central bankers in Mexico City February 25-26, which is intended to pave the way for the summit.

The IMF is looking at ways to expand its war chest, which currently has about $385 billion available.