G-20 pledges more than $430 billion for IMF

Apr 21,  Leading economies from the G-20 Group have pledged more than 430 billion dollars to International Monetary Fund's Emergency Fund. The move effectively doubles its lending capacity for shoring up Euro. At a G-20 Finance Ministers' Meeting in Washington, Russia, China and India also promised money.

A report says the resources will not be aim of any particular region and now be available for any member country of the IMF and these are intended to safeguard global financial stability. But in practice, the reason for this initiative is the crisis in the Euro Zone. The aim is to ensure that the International Monetary Fund has the resources to deal with a substantial deterioration in the European financial situation. The IMF could be called on to help countries in the Euro Zone or those outside if they were severely affected as a result.