» Business » IMF welcomes China's decision to invest $50 billion

IMF welcomes China's decision to invest $50 billion

By Lalit K Jha in Washington
Last updated on: June 10, 2009 12:18 IST
Get Rediff News in your Inbox:

The International Monetary Fund has welcomed the Chinese decision to invest $50 billion in notes issued by the IMF, which would help in addressing the global financial crisis-related issues in third world countries.

'We are grateful to the Chinese authorities for signalling their intention to invest in IMF notes, thereby helping the IMF membership weather this global economic and financial crisis,' IMF Managing Director Dominique Strauss-Kahn said in a statement.

The IMF members' investment in the fund's securities will boost the fund's capacity to help member countries, particularly developing and emerging market countries, cope with the crisis and thus benefit all members by facilitating an early recovery of the global economy.

'With this announcement, Chinese authorities have signalled strong support for the international economic and financial system,' he said adding, 'This decision will be beneficial to all.'

At the same time, the new notes will offer members a safe investment instrument with reasonable return. 'IMF staff will present the necessary documentation to the Fund's executive board to allow the issuance of notes as early as possible,' he said.

Get Rediff News in your Inbox:
Lalit K Jha in Washington
Source: PTI© Copyright 2021 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

Moneywiz Live!