The IMF has introduced a new lending facility worth up to $100 billion to aid developing countries stricken by the financial market turmoil.
"Exceptional times call for an exceptional response," said IMF Managing Director Dominique Strauss-Kahn. "The Fund is responding quickly and flexibly to requests for financing. We are offering some countries substantial resources, with conditions based only on measures absolutely necessary to get past the crisis and to restore a viable external position."
The loans would be three months in duration and would not bear the structural reform conditions usually associated with borrowing from the IMF. Furthermore, countries will be allowed to access the facility up to a maximum of three times over twelve months, provided the nation bears a good track record for repayment.
"The IMF will respond with all the necessary financing," Strauss-Kahn said. "We are prepared to use our own resources and to work with others to generate additional resources to make sure that countries have the money they need to restore confidence and maintain stability."
By Erik Kevin Franco and edited by Nancy Girgis
©CEP News Ltd. 2008