As protesters clashed with police on Washington's streets, U.S. Treasury Secretary Timothy Geithner urged world finance officials meeting near the White House on Saturday to provide more money to help countries wrung by the recession.
Geithner said major progress toward bolstering the International Monetary Fund ``must be an important outcome of these meetings. The international community should act quickly.''
More than 100 demonstrators angered by how world leaders have handled the economic crisis took on police outside the headquarters of the IMF and World Bank, which are holding their spring meetings this weekend.
Authorities used batons and pepper spray when activists tried to march onto a prohibited street, and several people were pushed to the ground by police. The protesters swarmed officers unexpectedly, and police had to respond, said D.C. police Capt. Jeffrey Harold.
In early April, leaders from the Group of 20 developed and emerging nations pledged to provide $1.1 trillion in new resources to international lending institutions, including $500 billion for the IMF. President Barack Obama is seeking congressional approval for up to $100 billion, matching commitments for the same amount made by Japan and the European Union. But the full $500 billion has not yet been pledged.
The additional money could aid countries in Latin America, Eastern Europe and elsewhere that are reeling from sharp drops in exports and foreign investment. Such countries increasingly are relying on IMF lending to make up for the lost funds.
But divides emerged this weekend over how to provide the extra money. Emerging economic powers such as China, Russia, Brazil and India are insisting that the United States, France, Britain and other old-line powers listen to their ideas on different funding approaches.
They want the IMF to consider issuing bonds as a way to raise the support. The countries would buy the IMF bonds rather than extending the support in loans.
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1 comment:
what a way to go,stiff penalties by Geithner and the banks in a different mind-set and lent money in USA is sitting empty with no returns to the banks.Empty building do not produce revenue. The Banks would be getting 4cents out of a dollar, if at all the real estate and CC holders start at their end of the bargain. The banks are forced to lend, now comes the TEST- do or die. Otherwise, FEDS take over the junk to add it to deficit in the budget
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