US says no more money for IMF

WASHINGTON - Agence France-Presse

The U.S. Treasury reiterated Feb. 16 that Washington has no plans to provide more money to the International Monetary Fund (IMF) as the eurozone crisis drives the Fund to raise more emergency resources.

Treasury undersecretary for international affairs Lael Brainard told a congressional hearing that the U.S. economy could be damaged by a further deterioration of conditions in Europe.

But with the IMF seeking to boost the funds it has for intervention and support against eurozone crisis contagion by some $500 billion, Brainard said the U.S. was still not planning to contribute.

“We believe that the IMF has adequate resources, and we don’t see any need for the US to provide additional resources to the IMF at this time,” she told the Senate Banking Committee. “The euro area is currently confronting difficult challenges of fiscal sustainability, or liquidity, and of structural imbalances. We believe Europe has the will and the capacity to manage these challenges effectively.”