Financial Crisis Brought IMF a Profit of $126 Million Last Year
The International Monetary Fund (IMF) concluded the 2008-2009 fiscal year with a profit of 126 million dollars, as the global economic crisis has increased demand for fund loans, after a year before it had lost 89 million dollars.
IMF announced that the financial situation has improved significantly due to higher demand for loans from Member States, after initially anticipated loss of 292 million dollars for fiscal year 2008-2009, which ended on April 30. In the previous year, the Fund revenues were affected by the decisions of major debtors, such as Argentina and Brazil, to pay its debts before the set date.
For the fiscal year, began on May 1, the IMF predicted a profit of 446 million dollars. The amount could increase, but at 1.1 billion dollars, having regard loans that are still in the stage of negotiations.
“These estimates involve a high degree of uncertainty because of the difficulty to predict the evolution of demand for financing from the IMF and the crisis evolution “, stated in a communication of the international financial institution.
IMF stresses that improving the financial situation does not change the need to implement a sustainable model of getting profit, adopted by the Executive Board last year to reduce Fund dependence by revenue derived from temporary credits.