Global Financial Crisis: Increasing IMF Resources and the Role of Congress [June 5, 2009]   [open pdf - 308KB]

Alternate Title: Global Financial Crisis: Increasing International Monetary Fund Resources and the Role of Congress [June 5, 2009]

"The current global financial crisis is testing the ability of the International Monetary Fund (IMF), and other international financial institutions (IFIs) to provide sufficient assistance to affected countries. It has also enhanced the IMF's role in crisis management and given it a key place in current efforts to reform the world financial system. During the past half-year, many countries have come to the IMF for assistance and more are likely to apply. Several steps have been taken to expand the IMF's financial resources and to otherwise augment the funds available to help vulnerable countries weather the present crisis. At their meeting in London on April 2, 2009, the leaders of the 20 systemically important industrialized and developing countries (G-20) agreed on several initiatives affecting the IMF and other international organizations. […]. Some elements of the above require congressional approval and some do not. U.S. participation in the new IMF quota increase and a U.S. subscription of $100 billion for the NAB would require congressional approval. Likewise, amendments to the IMF Articles--including the prospective Fourth Amendment for a new SDR allocation--would require congressional approval. On the other hand, the proposed $250 billion allocation of SDRs (which is being made under a different provision of the IMF Articles) is too small to trigger the legal requirement that Congress give its assent. Any contributions to the IMF, to fund increases in the U.S. quota or to subscribe new resources to the NAB, must be authorized by Congress."

Report Number:
CRS Report for Congress, R40578
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