10/19, 6:07 AM (Source: TeleTrader)
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US says IMF's emergency facility can grow to $500B

The International Monetary Fund must be adequately resourced for its role in pursuing "budget restraint and institutional efficiency," United States Secretary of the Treasury Steve Mnuchin said. He told the institution's steering committee at its joint annual event with the World Bank that the administration in Washington supports the closure of the 15th general review of quotas and the initiative to double the so-called New Arrangements to Borrow (NAB).

The emergency facility is currently worth $250 billion and Mnuchin stressed the need to be able "to respond to potential crises" on a midterm basis.

"Recent signs of weakness in parts of the global economy underscore the need for countries to use all tools at their disposal to reignite growth. With space for monetary easing diminishing in many countries, fiscal policy paired with progrowth structural reforms that will durably raise investment, job creation, and productivity will need to play a larger role," the US official stated and claimed his country's economy "remains strong."

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