IMF Approves Sale of Some of Its Gold
By THE ASSOCIATED PRESS
Published: September 18, 2009
Filed at 6:12 p.m. ET
WASHINGTON (AP) -- The International Monetary Fund approved on Friday the sale of a limited amount of its gold to help provide loans to poor countries and shore up its finances.
Why would the IMF need to sell gold in the first place?
In recent years, some countries with thriving economies managed to pay off their IMF loans ahead of time, reducing income the IMF derived from loan interest and putting a strain on its finances. The IMF is expected to be running a deficit of $400 million in 2010.
Strauss-Kahn instituted some belt-tightening measures when he took over in 2007 by reducing staff amid suggestions the organization was becoming increasingly irrelevant because of its shrinking loan portfolio.