IMF extends lending power

© Scanpix/AFP

IMF accepted several changes to broaden its lending power to counter European debt turmoil. The main goal of proposed reforms is to support troubled countries with cash in hard times and especially to relatively healthy countries with short-term credit crunch or so called crisis-bystanders. According to Christine Lagarde, head of IMF, organization's credit line could be used for insurance or short-term loans to protect bystanders during global stress.