International Monetary Fund's Closeness to Euro Zone Worrying Investors
The International Monetary Fund has a stable record, but with countries such as Italy and Spain asking the IMF for emergency rescue funds, some nations are worried their investments will be at jeopardy if the international fund hands out loans.
The EU has agreed to shell out up to $270 billion to the IMF in case it can't raise sufficient funds on private bond markets, according to the Washington Post. The agreement was between 26 European nations excluding Britain, after the IMF announced that they were looking for funds from the international community.
The IMF may be counting on monetary backing from Asian nations like China, as well. The fund continually asks for support from the global nations that have the cash to spare, but lately, as the international economy remains struggling or stagnant and economies such as Greece, Portugal and Ireland have relied on the IMF to bail them out, investors are increasingly hesitant to hand over billions.
The U.S. has no plans to contribute more to the fund for a bailout of Italy or Spain, according to a report from the Washington Post.