The International Monetary Fund has laid the groundwork for an issuance of bonds to member countries. The IMF hopes the move will help it bring rapid assistance to members when needed.
The IMF will issue bonds for the first time in its history. The board agreed on the framework of the new money making program on Wednesday. The scheme is expected to help win contributions from emerging economies, and boost its source of money to lend during the global recession.
G20 leaders agreed to triple the IMF's lending resources to 750 billion US dollars to help countries facing serious budget crunches.
China has signaled its intention to invest up to 50 billion US dollars in the notes, while Russia and Brazil also plan to buy 10 billion dollars each.
The notes will have a maximum maturity of 5 years, with 3-month interim maturities that could be extended by the IMF.
The bonds can also be traded among central banks, but not in the private sector.
The IMF has not set a cap on how much the debut could issue.
Issuance will begin after purchase agreements are reached with interested members.
(CCTV July 3, 2009)
