IMF considers crisis lending facility

The International Monetary Fund is considering creating a lending facility that could be put into use if another financial crisis…

The International Monetary Fund is considering creating a lending facility that could be put into use if another financial crisis erupts, the Yomiuri daily quoted the IMF's new deputy managing director as saying today.

The envisioned facility would be similar to the emergency US dollar lending that the Federal Reserve launched in cooperation with foreign central banks in the wake of the latest financial crisis, Naoyuki Shinohara was quoted as saying in an interview.

The dollar swap arrangements, through which the Federal Reserve provided billions of dollars to overseas financial firms via foreign central banks, expired on February 1st.

Mr Shinohara, Japan's former vice finance minister for international affairs, also said the IMF is prepared to respond if there is a request to help Greece with its fiscal problems, adding that the fund is closely watching the situation for now.

Mr Shinohara assumed the post on March 1st.

Reuters