Photo: IMF Staff Photograph/Stephen Jaffe (archives)
Economy: The Grand Duchy has pledged more than two billion euro to the International Monetary Fund’s emergency reserves to fight the global economic crisis.
Luxembourg was one of 37 nations that increased their commitments to the crisis fund to a total of US$456 billion on Tuesday. The pledges came during the summit of the G20, the Group of 20 industrialised and emerging market countries, held in Los Cabos, Mexico, on June 18 and 19.
The emergency funds can be used by any of the IMF’s 188 member states, the organisation stressed, but the problems in the euro zone were specifically cited in the IMF announcement.
All told, 43 percent of the pledges came from euro zone members, while 47 percent came from countries outside the EU.
The largest commitments came from Japan ($60 billion), Germany ($54.7 billion), China ($43 billion), France ($41.4 billion) and Italy ($31 billion).
Luxembourg’s US$2.7 billion pledge was not the smallest. Malta said it would add $300 million and Cyprus $600 million to the financial armoury.
“We have more work to do before global recovery is assured, but I take away from Los Cabos a sense of convergence that will facilitate the comprehensive and coordinated approach to global economic and financial challenges advocated by the IMF,” Christine Lagarde, head of the organisation, said in a press statement (photo). “The seeds of a pan-European recovery plan had been planted.”