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IMF Seeks $400 Billion For Eurozone Debt Crisis

IMF chief Christine Lagarde
The International Monetary Fund (IMF) is asking members to loan about $400 billion to the global development agency.

IMF Managing Director Christine Lagarde made the announcement in an interview with a German newspaper ahead of an April 20 meeting of IMF finance ministers and central-bank directors in Washington.

Earlier, Lagarde had said $500 billion would be needed to help the fund combat the eurozone debt crisis.

Also on April 17, Japan pledged a $60 billion loan to the IMF's debt-crisis mechanism, saying the eurozone crisis was "crucial" to Asia and Japan, as well as to Europe.

Japanese Finance Minister Jun Azumi said he hoped Tokyo's move would prompt other countries to boost contributions to the fund.

Meanwhile, the IMF has raised its forecast for 2012 global economic growth to 3.5 percent, up 0.2 percentage points from its January estimate.

In its outlook, released on April 17, also upped its 2013 forecast by 0.1 points to 4.1 percent.

The global lending organization said that the U.S. economy should grow by 2.1 percent this year, while Europe will likely shrink 0.3 percent.

The IMF praised European leaders for steps to address the economic and financial crisis.

It said the crisis continues to loom as the biggest threat to the global economy.

The report comes as the 187-nation organization and its sister lending institution, the World Bank, prepare to hold their spring meetings in Washington later this week.

Based on reporting by AP, Reuters, AFP, and dpa