REUTERS - The International Monetary Fund has committed a record $188 billion to crisis-hit countries since 2008, including nearly $40 billion for Greece, raising questions over whether it has enough resources should more euro zone states need a financial lifeline.European leaders have asked the IMF to stand ready to provide up to $310 billion (250 billion euros) as part of a $1 trillion package of loans and guarantees to prevent Greece's financial woes spreading to other euro zone countries.If it were faced with immediate requests for the full $310 billion, it would take the IMF several weeks to tap various sources of funding.Following are questions about IMF resources:WHERE DOES THE IMF GET ITS MONEY?The IMF's financial resources are generated through IMF member country quotas, or subscriptions, that are based broadly on the size of each country's economy. The United States is the biggest contributor with a 17.09 percent stake worth roughly $54 billion.Members are currently negotiating a new quota agreement that would increase the voting power of emerging economies such as China and bring in more funds.HOW FAST CAN THE IMF COME UP WITH 250 BILLION EUROS?The IMF has about $242 billion in resources it can draw from immediately. It would take several weeks to mobilize more.HOW MUCH MORE MONEY CAN THE IMF ACCESS?In addition to the $242 billion, the IMF can quickly activate a crisis fund called the New Arrangements to Borrow (NAB), which would give it access to another $52 billion.The IMF agreed to expand the NAB in April, a decision that will eventually give it an additional $238 billion. It did this by adding 13 new contributing countries, including several emerging market economies such as Brazil, India, China and Russia.These new funds will, however, will only be available once approved by countries' legislatures. The U.S. Congress has already approved a contribution of $100 billion to the expanded NAB, which is almost 20 percent of the total.All of these figures are subject to exchange rate adjustments.HOW MUCH CAN THE IMF ACCESS FROM ALL FUNDING SOURCES?The IMF's resources are set to reach about $850 billion once countries have approved and paid in money committed since 2008, according to the IMF's website. These include total resources after NAB has been expanded and a 2008 quota increase has been ratified.CAN THE IMF SELL MORE GOLD TO RAISE MONEY?IMF member countries agreed in September 2009 to sell 403.3 tonnes of gold, which represents one-eighth of the Fund's total gold holdings. The decision was aimed at putting the IMF's finances on a sound long-term footing and providing more resources for lending to poor countries.The IMF cannot sell more than the 403.3 tonnes of gold without approval of the majority of its 186 member countries. As of Feb. 1, 2010, IMF gold holdings were worth $105.0 billion at current market prices.Any further sales may require changes to the IMF's articles of agreement.WHO DECIDES HOW IMF MONEY IS SPENT?Loans are signed off by the 24-member IMF executive board, which is made up of representatives from the Fund's member countries. Most executive directors represent a group of countries. For example, Italy speaks on behalf of Greece, Albania, Portugal, Timor-Leste, San Marino and Portugal. Europeans have eight seats on the board.Details of a loan agreement are first worked out between IMF staff, management and the country seeking assistance before it goes to the board. Documents outlining an agreement are circulated to board members before they meet to finalize a loan.Most board decisions are by concensus. If a country does not agree with a proposal, it will abstain from the decision. The United States has veto power over decisions but has never used it.For a list of IMF lending programs go to: http://www.imf.org/external/np/fin/tad/extarr11.aspx?memberKey1=ZZZZ&date1key=2020-02-28(Reporting by Lesley Wroughton; Editing by Andrew Hay)News posted by www.newsinfoline.com
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