The International Monetary Fund is seeking to boost its lending resources from 750 to 1,000 billion U.S. dollars, to better handle the risk of future financial crises.
IMF's Managing Director Dominique Strausss-Kahn says the bigger credit lines should be used to help prevent a future crisis. He says that "even when not in a time of crisis, a big fund is something that can help prevent crisis."
The IMF wants to agree financing deals in advance that will be specially tailored to individual countries, rather than respond to future situations with conditional loan packages. The aim is to cool market anxiety over any nation facing an imminent liquidity crunch.
The IMF says its lending facilities so far have been focused on crisis resolution, more than crisis prevention.
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