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The IMF has sought for months to boost its coffers. Managing Director, Christine Lagarde, last year warned that the needs of potential emergency bailouts across the globe amid the growing euro debt crisis may "pale in comparison" to the IMF's existing cash base. Despite its best efforts, so far the IMF has been unable to persuade the Group of 20 largest industrialised and developing nations to make a firm pledge for cash.
"Based on staff's estimate of global potential financing needs of about $1 trillion in the coming years, the Fund would aim to raise up to $500 billion in additional lending resources", an IMF spokesman said. That includes the recent European commitment of about $200 billion beyond their normal IMF dues.
"At this preliminary stage, we are exploring options on funding and will have no further comment until the necessary consultations with the Fund's membership have been completed", the spokesman said.
The eurozone official said Europe was planning to commit around $250 billion and the rest of the world would need to cough up an additional $350 billion. That would ensure the Fund has around $100 billion in prudential reserves on the fund's balance sheet.