If The IMF Needs Money

THE MANAGING Director of the International Monetary Fund (IMF), Dominique Strauss-Kahn, has warned that the Fund will in the near future need more money if the global financial crisis continuous to heighten.
He said,“IMF has sufficient resources to cope with the crisis but if the crisis goes on, then six months from now, we will need more money.”
Before the crisis erupted, the IMF had around $200 billion in available resources and access to a further $50 billion. Since then, Japan has offered to lend the IMF an additional $100 billion but Strauss-Kahn has indicated that the IMF may need an extra $150 billion to help emerging markets and low-income countries get through the crisis.
But my question is if an international financial institution like the IMf that would bail small econmoies like Ghana out is saying it needs more money that where can we turn to when we need help.
According to the IMF Boss, 2009 will not be a good year for the world economy, “even if we see recovery at the beginning of 2010".
An IMF report has indicated that prospects were worse than expected not just in the United States and Europe but also in major emerging market economies such as China, India, and Brazil, which would experience very low growth compared with recent historical trends.
The IMF has proposed that governments in a position to do so should act together to inject a global fiscal equivalent to about 2 percent of world GDP—$1.2 trillion.
“The world faces a deepening economic crisis”, the IMF Managing Director warned.
Strauss-Kahn said that the crisis highlighted the need for better regulation and supervision of the banking sector, especially in countries such as the United States.
He said IMF would significantly adjust downward its forecast for world growth for 2009 when the 185-member international institution announces a revised assessment of the global economy on January 29.
But Strauss-Kahn said in an interview with the BBC's Hardtalk program, that economic prospects had worsened over the past few months and his outfit would announce lower numbers at the January 29 press conference in Washington DC.
A number of governments around the world have announced stimulus plans, including in the United States, Japan, Europe, China, and India.
But Strauss-Kahn said he did not think enough had been done so far. "In Europe especially, they are still behind the curve," he said.
Strauss-Kahn warned of the risk of social upheaval and unrest in some countries worst affected by the downturn and said he expected additional countries to seek IMF help, not just in Eastern Europe, but elsewhere in the world, including Latin America where some countries were "just on the edge."
The IMF has so far committed $47.9 billion in lending to a number of economies affected by the crisis, including Belarus, Hungary, Iceland, Latvia, Pakistan, Serbia, and Ukraine. It announced a precautionary loan for El Salvador this month and an IMF team is also in negotiations with Turkey.