January 14, 2011
IMF Raises Income Forecast by 63% on Higher Loans
The International Monetary Fund increased its income forecast for this fiscal year by 63 percent because of lending income expected from the European sovereign debt crisis.
The Washington-based IMF estimates net operational income of about $507 million for the year ending April 30, compared with a $312 million forecast at the start of the fiscal year, according to a statement released today. New loans, including a $39 billion one to Greece, will generate about $114 million in service charges, the institution said.
The Washington-based IMF stepped up loans in the second half of 2010 after a debt crisis erupted last year and led to bailout packages for Greece and Ireland, resulting in two of the highest loans in the fund’s history.
The IMF also said its interest rate would remain unchanged at 1 percentage point above the special-drawing rights rate, which is currently 0.33 percent. SDRs are the IMF’s unit of account and have a value derived from the U.S. dollar, euro, sterling and yen.
Separately, the IMF today said it made a profit of $10.6 billion from the sale of 403.3 metric tons of gold on the open market and to central banks. The sale was concluded in December.
IMF Raises Income Forecast by 63% on Higher Loans
The International Monetary Fund increased its income forecast for this fiscal year by 63 percent because of lending income expected from the European sovereign debt crisis.
The Washington-based IMF estimates net operational income of about $507 million for the year ending April 30, compared with a $312 million forecast at the start of the fiscal year, according to a statement released today. New loans, including a $39 billion one to Greece, will generate about $114 million in service charges, the institution said.
The Washington-based IMF stepped up loans in the second half of 2010 after a debt crisis erupted last year and led to bailout packages for Greece and Ireland, resulting in two of the highest loans in the fund’s history.
The IMF also said its interest rate would remain unchanged at 1 percentage point above the special-drawing rights rate, which is currently 0.33 percent. SDRs are the IMF’s unit of account and have a value derived from the U.S. dollar, euro, sterling and yen.
Separately, the IMF today said it made a profit of $10.6 billion from the sale of 403.3 metric tons of gold on the open market and to central banks. The sale was concluded in December.
The institution agreed in September 2009 to dispose of about 13 percent of its gold reserves to shore up its finances and lend at reduced rates to low-income countries.
http://www.bloomberg.com/news/2011-01-14/imf-raises-income-forecast-by-63-after-stepping-up-spending.html
http://www.bloomberg.com/news/2011-01-14/imf-raises-income-forecast-by-63-after-stepping-up-spending.html
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