IMF working on plans for "green fund" – IMF chief

WASHINGTON, Jan 30 (BestGrowthStock) – The International Monetary
Fund is working on proposals for a multibillion dollar “green
fund” to help countries tap funds to deal with the effects of
climate change, the head of the institution said on Saturday.

IMF Managing Director Dominique Strauss-Kahn told the World
Economic Forum in Davos, Switzerland, that developing countries
would need financial help to tackle climate change while rich
nations have taken on higher debt in reaction to the global
financial crisis.

Global talks on a new climate change pact have mostly
looked to industrial powers to help finance efforts by
developing countries to deal with climate change.

In remarks in Davos that were published on the IMF website,
Strauss-Kahn said the world needed to “think outside the box
and come up with innovative ways to provide the money.”

He said the IMF would begin discussions with central banks
and finance ministers on whether such a fund was possible.

Strauss-Kahn said resources for the fund, “which could
climb to $100 billion a year,” could be raised through an
allocation to IMF member countries of IMF special drawing
rights, or SDRs.

SDRs are international reserve assets and the fund’s unit
of account. They are disbursed in proportion to each member’s
IMF quota, or subscription, and can be exchanged for hard
currency such as U.S. dollars, yen, euros or pounds.

Last year IMF member countries agreed to issue $250 billion
worth of SDRs to boost global liquidity at a time countries’
foreign exchange reserves were being depleted by the financial
crisis,

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(Reporting by Lesley Wroughton; Editing by Xavier Briand)

IMF working on plans for “green fund” – IMF chief