Statement by IMF Managing Director Dominique Strauss-Kahn on the European Union’s Announcement of Financial Support for the IMF

March 20, 2009 

The Managing Director of the International Monetary Fund (IMF), Mr. Dominique Strauss-Kahn, made the following statement today:

“I welcome the announcement today by the European Union to support the IMF lending capacity in the form of a loan to the IMF totaling €75 billion (about US$100 billion). This is a major contribution to maintaining the stability of financial and capital markets, and clearly demonstrates the strong commitment to multilateralism.

“This leadership from the European Union, like the one already demonstrated by the Government of Japan, is an important step toward stabilizing the global financial system during this period of unprecedented stress. The commitment will serve to increase confidence that the IMF’s resources will be sufficient to meet the financing needs of its member countries—particularly our emerging market members—should they need to turn to the IMF for support. It signals that the international community stands ready to provide strong backing to emerging markets that will strengthen their resiliency against financial market turmoil.

“We hope that other countries may now provide their own support to our efforts to restore stability to the global economy.

“I also welcome the decision to double the EU's own balance of payments support facility for non-euro area members as a contribution to strengthening confidence in a region severely tested by the global financial crisis.”