High Quality
Open the downloaded document, and select print from the file menu (PDF reader required).
U.S. DEPARTMENT OF THE TREASURYFACT SHEETThe U.S. Stake in Europe’s Economic HealthIMF contributions to European support actions do not require U.S. appropriated funds
.
•
No congressional appropriations are required. The IMF has ample financing to meet anyforeseeable commitments.
•
U.S. taxpayers have never lost money on their commitment to the IMF, for two key reasons:
o
The IMF is the world’s preferred creditor—which means it’s first in line to get paidback when it lends money.
o
The IMF demands tough fiscal and structural reforms in return for its loans—whichmeans it only lends when a nation is undertaking changes to become a morecreditworthy borrower.
•
Background:
o
The IMF has a rock solid balance sheet and an exemplary repayment record.
o
The IMF has highly liquid reserves of more than $10 billion, and its gold holdings areworth more than $100 billion at current market prices.
o
Every member of the IMF essentially “owns” a percentage of the fund (a so-called“quota”) that broadly reflects its relative weight in the world economy. As the IMF’slargest shareholder, the United States’ quota is approximately 17 percent.
The IMF has made no formal commitments under Europe’s newly announced supportprogram.
•
Any IMF disbursements would take place only in the context of IMF country programs withstrong fiscal reform components. Such programs are done on a country-by-country basis.
•
Europe would bear the lion’s share of the responsibility for programs in any EU memberstates. In Greece, Europe will be responsible for more than 80 percent of the total $140billion European/IMF package, between $102 billion in bilateral commitments from EUmember states and a $11 billion European share in the Greece’s $38 billion IMF program.
•
The IMF has ample financing to meet any additional foreseeable commitments.
The health of Europe’s economy is vital to the health of our own.
•
Europe represents a quarter of global GDP and is a major source of demand for U.S. exports.Strong growth in Europe supports production and jobs in the U.S. A prolonged and deep
The risk to U.S. jobs and economic recovery from a deep and sustained recession in Europe is onewe cannot afford to take. Supporting the IMF as it stands ready to support European countries is afar preferable alternative. Any IMF role in Europe’s stabilization efforts would help its economicrecovery stay on track—at no cost to U.S. taxpayers:
•
No congressional appropriations are required.
•
The United States has never lost money on its commitment to the IMF.
Add a Comment