IMF head asks for more funding

‘IMF will need more funding to play a bigger role in assisting a global economical recovery,’ says Dominique Strauss-Kahn, the head of the International Monetary Fund.

In an interview with the BBC news, Dominique Strauss told that we needed at least $100bn of extra funding over the next six months.

Strauss also asked the states to keep on decreasing interest rates. Strauss comments came at the time when the Japanese economy shrank 0.1 % in the Q3 and officially entered a recession.

The world’s second-biggest economy saw a 0.95 contraction in the previous quarter from April to June.

G20 leaders have agreed to co-operate closely to stimulate worldwide economic growth at a summit in Washington on Saturday. In the summit developed as well as developing countries were urged to work together to cut taxes, interest rates and government spending.

The finance ministries of these countries have also been asked to discuss the long-term reform of finical regulation and their proposals to be discussed at summit in April.

The G20 summit brought leading industrial powers like US, Germany and Japan and emerging markets like China Argentina, Brazil, India and others together.

The international Monetary Fund has been asked to play an important role in crisis response. The communiqué issued after the summit welcome IMF’s new short-term liquidity facility.