FACTBOX-What is the $1 trillion in new G20 financing?
LONDON, April 2 (Reuters) - The G20 world leaders on Thursday agreed to $1 trillion in financing for the world economy to tackle the recession and shore up the financial system.
These actions are on top of the estimated $5 trillion in fiscal stimulus spending that the G20 estimates will be implemented by the end of 2010, British Prime Minister Gordon Brown said at a news conference.
Here are details of the new financing:
INTERNATIONAL MONETARY FUND
- The IMF's war chest is tripled in size to $750 billion from $250 billion, giving it much more money to lend out to countries that run into financial trouble. The countries contributing to these new resources are Japan and the EU, $100 billion each and China $40 billion. Other countries also will contribute to this funding, called the New Agreement to Borrow which will be launched in the next few weeks
- The IMF also will issue $250 billion in additional Special Drawing Rights for its member countries, which essentially is printing new money to improve global liquidity
- IMF to bring forward gold sales
TRADE FINANCE
A new programme will finance more than $250 billion of trade over two years, 40 percent publicly financed and 60 percent privately. The World Bank has announced $50 billion as part of this programme.
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