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The International Monetary Fund said on Wednesday that it will issue the bonds for the first time in the 60-year history of the company. This step is an effort for winning the contributions from the emerging economies like China, Brazil and Russia.
This new scheme of money-making comes as IMF has dramatically increased its role as emergency lender during the global economic crisis.
Leaders of G20 nations, the block of the wealthy and the emerging powers have agreed during March for the tripling of IMF's lending resources to $750 billion for helping the governments which are facing grave budget crunches.
China has already mentioned that it will invest $50 billion, while Russia and Brazil are ready for pledging about $10 billion each via the new offer. This will be the first time the developing countries will be making contributions to IMF.
The MD of IMF, Domnique Strauss-Kahn, told that the bonds will be a "secure investment" for the 186 member nations of IMF. It also showed that IMF is committed towards the "tackling head-on the effects of the global financial and economic crisis."
The bonds will be issued in the IMF's own currency, known as special drawing rights, which is based on a basket of currencies made up of the dollar, euro, yen and British pound. The bonds will be issued for a maximum of five years.
The bonds will be issued in the IMF's own currency, known as special drawing rights, which is based on a basket of currencies made up of the dollar, euro, yen and British pound. The bonds will be issued for a maximum of five years.
