Wednesday, March 3, 2010

IMF Working On Plans For “Green Fund”

The Internationally Monetary Fund (IMF) working on proposal of “green fund”. The Managing Director of the Internationally Monetary Fund Dominique Strauss-Kahn proposed about green fund in the world economic forum. The green fund includes multi billion dollars. The developing countries require financial support to handle the climate change.

The green fund should be helpful for the developing countries for handling the climate change. The rich nations should be taken higher debt in reaction to the financial crisis. The managing director of the Internationally Monetary Fund Strauss-Kahn said that the resources for the fund could raise up to $100 billion a year. Strauss-Khan also said that IMF begin discussions with central banks and finance ministers regarding the possibility of fund.

SDRs (Special Drawing Rights) will be helpful for the green fund and these are international reserve assets. The IMF members issues $250 billion worth of SDRs to boost global liquidity for the last year. Strauss-Kahn said that the world needed to come up with innovative ways to provide the money.”

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