Business

America on the Hook? IMF Might Contribute to EU Bailout Fund

International Monetary Fund Might Contribute to EU Bailout

IMF Chief Christine Lagarde (center), Image: Reuters

The International Monetary Fund (IMF) is considering taking part in the eurozone bailout fund but has not made a decision yet, reports Reuters.

“The IMF has indicated that they are considering it — they have not taken a position,” a eurozone official said. “It will all depend on the whole package.”

In the words of John Carney of CNBC: “Translation: The US taxpayer may wind up funding the EFSF [European Financial Stability Facility] bailout fund.”

Analysts have been been buzzing about the size of IMF involvement in the eurozone bailout, but this is the first confirmation that the fund is actively thinking about playing an even bigger role than it is now, reports Business Insider.

Euro zone leaders are expected to approve a plan on Wednesday to increase the financial capabilities of the EFSF, a 440 billion euro bailout fund, without eurozone countries having to invest more capital into it.

“They have not agreed yet, but they have not ruled out this possibility. We have to define it better — there would have to be a political agreement that this is something we would like to do and then we could talk with the IMF and the others,” a second official told Reuters.

Well, how does this become the U.S. taxpayer’s problem?

The reason this could be trouble for Americans is because the U.S. is the “largest source of funding for the IMF,” according to Carney. The U.S., by itself, contributes 17.72 percent of the IMF’s annual budget.

“It’s not clear at this stage what role the IMF would play,” Carney writes. “Would it be partially funding the expansion? Or playing some kind of administrative role? The details will likely make all the difference to whether US politicians balk at using the IMF as part of the Eurozone bailout.”

A third source for Reuters said there were talks between the head of the IMF, Christine Lagarde, and European Union leaders about this technical option to raise money for the EFSF.

“An administrative account based at the IMF could be created easily since it will need only the IMF board approval to start, then it could act quickly and with little involvement of the IMF board provided it follows the guidelines given by the contributors,” the third official said.

Hopefully, this “consideration” does not turn into a solid commitment by the IMF to become more involved.

(H/T Business Insider)

Comments (10)

  • zenjak
    Posted on October 26, 2011 at 12:55pm

    As if our own government stimilus rackets aren’t bad enough, now we have to give even more than we already have to the IMF’s? These are the geniuses who think that gov’t stimilus programs are a great thing. And I love how the “eurozone leaders” will vote for more bailout of the euro without their countries having to invest. Yup, sounds just like our government passing laws that they are exempt from.

    Report Post »  
  • Old-Hippie-Patriot
    Posted on October 26, 2011 at 12:33pm

    SAVAGE: From the Dreyfus affair to the Strauss-Kahn affair

    http://www.michaelsavage.wnd.com/2011/07/savage-from-the-dreyfus-affair-to-the-strauss-kahn-affair/

    ……”THIS WOMAN CHRISTINE LAGARDE WAS INVOLVED. SHE’S THE NEW HEAD OF THE IMF AND A PROTÉGÉ OF SARKOZY. IN FACT, IF YOU INVESTIGATE CHRISTINE LAGARDE THERE ARE MANY INTERESTING DETAILS IN HER PAST. FOR EXAMPLE, THERE’S A SCANDAL IN FRANCE WHERE SHE ARRANGED A QUESTIONABLE 285 MILLION EURO PAYOUT TO A FRENCH BUSINESSMAN, BERNARD TAPIE IN 2007.

    ALSO, SHE WORKED FOR WILLIAM COHEN, REMEMBER HIM? DEFENSE SECRETARY UNDER BILL CLINTON.

    ALSO, WELL-KNOWN AS A GOOD FRIEND OF TIMOTHY GEITHNER.

    ALSO, SHE ROSE TO THE HEAD OF A TOP CHICAGO LAW FIRM. VERY INTERESTING FROM A WOMAN BORN IN THE US, BUT FROM FRANCE REALLY, HOW’D SHE RISE TO THE TOP OF A CHICAGO LAW FIRM?

    LET’S USE CHICAGO NOW AS A STARTING POINT. CHICAGO: RAHM EMMANUEL, BARACK OBAMA AND NOW THE HEAD OF THE IMF? SEEMS TO ME CHICAGO IS RUNNING THE WORLD AND THE WORLD ECONOMY. “

    Report Post » Old-Hippie-Patriot  
  • JEANNIEMAC
    Posted on October 26, 2011 at 11:39am

    What good has belonging to the UN done for the USA? It has cost US taxpayers billions of dollars poured into the pockets of nations who hate us. It is time to resign form the UN, and tell the other members to leave the country. Then we can turn the buildings into apartments. The rents would bring income to NYC and we would have a gorilla off of our back.

    Report Post »  
  • boca_chica
    Posted on October 26, 2011 at 10:01am

    We already gave them billions through AIG, now they want us to prop them up again? Your system does not work, admit it.

    Report Post »  
  • jcizarter
    Posted on October 26, 2011 at 9:32am

    I am thinking about the passages in Deuteronomy 28 and Leviticus 26, these are coming true. Read the whole chapter to get the big picture.

    Report Post » jcizarter  
  • Raven249
    Posted on October 26, 2011 at 4:17am

    We can’t even pay our OWN debt! Why in the name of all that’s sane are we even having this discussion? We ain’t got it, Europe! Figure your own way out of your mess, cause we’ve got our own!

    Report Post »  
  • pamela kay
    Posted on October 26, 2011 at 2:44am

    Yeah, and we didn’t even get kissed.

    Report Post » pamela kay  
  • lukerw
    Posted on October 26, 2011 at 1:45am

    stop it; Stop It; STOP IT…

    Report Post » lukerw  
  • Akbarjonnie Shaheed
    Posted on October 25, 2011 at 11:53pm

    Go ahead taxpayer…..bend over

    Report Post »  

Sign In To Post Comments! Sign In

Sign Up For Our Newsletter!

Glenn Beck Radio

Listen to Glenn Beck 24/7 Listen Now
Restoring Love