May 20, 2009
President Obama has asked Congress to authorize $100 billion in loans to the International Monetary Fund (IMF) to help create a $500 billion global bailout fund.
[efoods]If passed by both the Senate and the House, the bill would allow the IMF to borrow up to $100 billion from the U.S. and increase the U.S. fiscal contribution to the IMF by $8 billion.
The Congressional Budget Office estimates that the loans would not cost the U.S. more than $5 billion.
“It’s a new appropriation,” Rob Blumenthal of the Senate Committee on Appropriations, the committee that drafted the bill, told CNSNews.com.
“No money is required upfront. We’re not writing a check for 108 billion. So in the long term, if loans go into default, then what the CBO (Congressional Budget Office) is saying is that it might cost us up to $5 billion, but there’s no immediate outplay of funds.”