IMF to issue bonds to raise funds
IMF is likely to resort to issuing bonds for the first time in the 64 year history of the international institution.
IMF wants to issue the bonds to developing countries like China and Brazil to support the funding needs of other weak countries in the world.
Even countries like South Korea and many of the European Countries are badly in need of financial bailout from IMF.
But with the subscription to the bonds of IMF, the contribution countries want more say on IMF operations in the future. That is likely to clash with the interests of developed countries like US, Japan and Europe which dominate the IMF, and influence all the decisions.
Also investing in IMF could be a alternative for China and Brazil, which have been so far investing most part of their trade surplus into US treasury bonds.
