IMF approves liquidity line program to improve credit

Discussion in 'Wall St. News' started by ASusilovic, Nov 22, 2011.

  1. Is there any more specific detail on this news? Is there more info on the latest scammer attempt to manipulate markets and currencies? The effect on EUR/USD seems to have lasted 30 minutes. I cannot quite understand what they are trying to swing.
  2. Tsing Tao

    Tsing Tao

    Yeah, and given that it's not really a liquidity issue, but a solvency one, what does this seek to accomplish again?
  3. The problem is with this intiative is its irrelevant size. The credit lines offer 5x (6 mo) and 10x (12 - 24 mo) the contribution of the country to the IMF resources. So, as an example, Italy's contribution is SDR 7.882bn, which means that it can borrow up to a max amount of SDR 78.82bn, which is arnd €91bn. Nowhere near enough to prevent contagion.
  4. maxpi


    it's like a payday loan to somebody that can't make the minimums on his credit card..