In late July, IMF head Christine Lagarde raised the prospect that the IMF simply does not have enough money to confront the possibility of major sovereign debt crises in Europe (see page 8). “The question is, do we still have the level of resources that is now needed and appropriate to address … the crises,” Lagarde said at a Council of Foreign Relations event in New York. “Maybe it could do with more,” she said, adding: “In the not too distant future, we will probably have to revisit this issue.” This would be on top of spring contributions to the New Arrangements to Borrow (see Update 65), a mechanism for supplemental bilateral loans to the IMF, of $50 billion from China and $14 billion each from India and Brazil.
World Bank & IMF in the news
EarthRights International examines how the Jam v. IFC case has helped to shift the landscape of accountability for international financial institutions by successfully challenging their claim to “absolute” immunity in US courts, potentially opening IFC up to further legal challenges in future.