G20 look to boost IMF resources by $400bn-500bn

The world’s 20 biggest economies are likely to agree to up the resources of the IMF by between $400bn and $500bn (€306m and €382m), rather than the $600bn initially sought by the IMF, Group of 20 officials have told Reuters.

The extra money is to give the IMF — a lender of last resort to governments — more firepower to fight the sovereign debt crisis, triggered by unsustainable policies in eurozone countries such as Ireland, Greece and Portugal.

G20 finance ministers will meet in Washington next week to discuss the IMF’s call for more resources from January after the eurozone increased the size of its own crisis-fighting funds in March in response to G20 pressure.