IMF increase resources to over $1 trillion but ask for billions in extra funding

'two seperate stories showing the hypocracy of the IMF.'

first) IMF to increase resources to more than $1 trillion
The International Monetary Fund may be hoping to increase its financial resources from $940 billion to at least $1.3 trillion, according to a newspaper report out Monday. German daily the Frankfurter Allgemeine Zeitung said two "models" were currently being examined to up the IMF's resources, without stating its source.
It follows comments on its lending capacity by managing director Christine Lagarde in an action plan released Saturday.
"Our lending capacity of almost $400 billion looks comfortable today but pales in comparison with the potential financing needs of vulnerable countries and crisis bystanders," Lagarde said.
"It will be useful to discuss, soon, the needs and contingency options," she added.
A November 2010 agreement doubled the permanent contributions, or quotas, of the IMF's member states.
But before the quota reform can take effect, a sufficient number of national parliaments must ratify it. About 40 have done so, of the 113 needed.
taken from http://www.breitbart.com/article.php?id=CNG.b1c65bdc1e0bef497e1f81f732897709.7e1&show_article=1

second) IMF may need billions in extra funding

The head of the IMF has warned that its $384bn (£248bn) war chest designed as an emergency bail-out fund is inadequate to deliver the scale of the support required by troubled states.

In a document distributed to the IMF steering committee at the weekend, Ms Lagarde said: "The fund's credibility, and hence effectiveness, rests on its perceived capacity to cope with worst-casescenarios. Our lending capacity of almost $400bn looks comfortable today, but pales in comparison with the potential financing needs of vulnerable countries and crisis bystanders."

The suggestion came after European officials revealed they were working on a radical plan to boost their own bail-out fund, the European Financial Stability Facility (EFSF), from €440bn (£384bn) to around €3 trillion.

The plan to increase the EFSF firepower is the crucial part of a three-pronged strategy being designed by German and French authorities to stop the eurozone's debt crisis spiralling out of control. It also includes a large-scale recapitalisation of European banks and a plan for an "orderly" Greek default.

Although Britain is not involved in the large-scale eurozone bail-out projects, it is liable for 4.5pc of IMF funding.
by Louise Armitstead and Jonathan Russell taken from http://www.telegraph.co.uk/finance/financialcrisis/8788223/Christine-Lagarde-IMF-may-need-billions-in-extra-funding.html