24 September 2009

Chilean Bank Quadruples Its Contribution to IMF Fund

By Nathan Gill
Sept. 24 (Bloomberg) -- Chile’s central bank said it quadrupled the amount of special drawing rights it is prepared to lend to the International Monetary Fund.

Chile, the only Latin American country participating in the IMF’s emergency credit line known as the New Arrangements to Borrow, increased the amount of rights, an accounting unit based on a basket of currencies, to 1.36 billion ($2.16 billion) from 340 million, the bank said today in an e-mailed statement.

“I welcome the Chilean authorities’ commitment to increase fourfold its contribution,” IMF Managing Director Dominique Strauss-Kahn said today in a statement posted on the IMF’s Web site. “This will help ensure the IMF’s lending capacity is sufficient to meet the financing needs of its member countries and demonstrates Chile’s commitment to multilateral cooperation.”

Chile’s central bank had about $25 billion in international reserves at the end of August, according to data posted on the bank’s Web site.