2009-04-25yahoo.com

The debate underscored what could be a growing divide within the 185-nation IMF, with emerging economic powers such as China, Russia, Brazil and India insisting that old-line powers such as the United States, France and Britain listen to their ideas on different funding approaches for the IMF.

At issue is how to supply a portion of the $1.1 trillion increase in resources for the IMF and other lending institutions that was set as a goal by President Barack Obama and other leaders at the Group of 20 nations summit in London on April 2.

The rich nations had hoped to get China and the other nations to commit to billions of dollars of support for that effort at these meetings. However, those countries are insisting that the IMF consider issuing bonds as a way to raise the support. The countries would buy the IMF bonds rather than extending the support in loans. The IMF has never issued bonds before, although the idea was explored in the 1980s.



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