Swedish central bank chief, Ingves would lend Skr100 billion to the IMFThursday, 15 December 2011
The Swedish central bank Governor, Stefan Ingves has been reported to deem it reasonable for sweden to give a loan commitment of up to Skr100 billion to the International Monetary Fund (IMF) crisis management.
AdvertisementThat is for the advantage of Sweden to participate in the financing of the IMF's support for the euro area, Sweden would be benefiting from a “better development in our region” according to the Governor, Ingves at a hearing of the Parliamentary Finance Committee on Thursday.
"Sweden has always participated in such aid, when it came to countries far away. To not participate when there is trouble next door - it would be strange, "he said.
Ingves believes that the risk tied to the loan is very low and its will benefit Sweden to participate in the collaboration, which total about 200 billion euros (about Skr1800 billion) in extra loan from Europe to the IMF.
"Normally those countries will pay all back to the IMF. It is only in extreme situations, such as a country ceases to exist that the IMF may have problems to get back borrowed money.” In addition, the IMF applies the principle that anyone who lends money will finally have the money back first," said Stefan Ingves.
Report hold that the Swedish central bank is ready to contribute as much as Skr100 billion to the IMF.
By Scancomark.se Team
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