G-20

G-20 pledges more than $430 billion for IMF

The Group of Twenty (G-20) advanced and emerging market economies, along with the broader IMF membership, agreed on pledges to boost the institution’s lending capacity by more than $430 billion.

Why this move?

The International Monetary Fund has been advocating the need to build a stronger global firewall of additional resources to contain any further financial crises. The move is to effectively double IMF’s lending capacity and protect the global economy from the euro zone’s debt crisis.
Although the global lender would be able to use its increased firepower to help any country or region in need, Europe’s crisis was the driving force behind the push for more funding.