IMF Offering Instant Loans For Cash- Strapped Governments

It has been revealed that the International Monetary Fund last week sanctioned a new programme to provide instant loans in an emergency financial situation to countries struggling with serious cash shortages in the wake of a constant monetary crunch.

According to IMF Managing Director Dominique Strauss-Kahn Countries, those with a "track record" of powerful economic policies can now apply for three-month short-term loans to pay off emergency unexpected expenses which cannot be neglected and delayed, so these loans can be availed without the usual lengthy conditions attached. The typical IMF loans come with certain policy expectations.

Strauss-Kahn reveals that some countries had already shown interest in the so-called Short-Term Lending Facility. So countries can borrow up to five times what they put into the IMF's 200-billion-dollar fund.

Today, the IMF has been working on an ad-hoc basis, offering instant loans for any financial emergency to Iceland, Ukraine and Hungary, where the governments have all faced critical financial crisis.

According to World Bank President Robert Zoellick earlier this month,

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