Earlier we wrote a story about the IMF looking to raise an extra $500 billion in order to fight the euro debt crisis. Well, there’s one country that isn’t lending them the money and that’s the United States. A U.S. Treasury official told CNBC earlier today that the U.S. has “no intention” of giving more money to the IMF.
The U.S. Treasury spokesman believes the Europe can solve its own problems and doesn’t need the IMF to prop it up. This is in line with the administration’s position of European countries enacting more measures to fight the debt crisis.
The IMF believes global potential financing needs about $1 trillion in the next few years. “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 statement said.
“This total includes the recent European commitment of about $200 billion in increased Fund resources. 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,” it added.
Regardless of what anyone thinks the IMF needs, the global markets will dictate the response in the end.