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  • Oct 29th, 2008
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The International Monetary Fund said on Tuesday it has moved up consideration of a proposed new short-term liquidity facility this week for countries battered by the global financial crisis. The IMF executive board is to take up the matter Wednesday instead of Friday, when it had been scheduled on the agenda, IMF spokesman Bill Murray told AFP.

"We have had fairly active discussions with our members and we've been able to advance our calendar a bit, for tomorrow morning," he said. The spokesman declined to provide details of the proposed new short-term lending facility, other than to say the money would come from the 185-nation lending institution's existing funds.

Murray said that the money would come from "existing liquidity, not creating any new liquidity." The IMF deputy managing director, John Lipsky, said in a speech in New York that the IMF was "moving quickly and playing an active role to help emerging economies battered by the crisis and the sharp slowdown in advanced economies."

"Since halting economic and financial crises requires timely measures, the Fund is actively considering the launch of a new short-term liquidity lending facility to address problems of fundamentally sound countries temporarily exposed to funding pressures," he told a meeting of the Securities Industries and Financial Markets Association.

Lipsky said the IMF "stands ready to disburse more than 200 billion dollars of loanable funds and can draw on additional resources through standing borrowing arrangements with groups of IMF member countries."

Copyright Agence France-Presse, 2008


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