The International Monetary Fund won pledges of fresh cash from Japan to Denmark in a sign it may be able to declare victory as soon as this week in its campaign for more lending resources.
Denmark, Norway and Sweden will increase their financing contributions by a total of more than $26 billion, IMF Managing Director Christine Lagarde said today. Hours earlier, Japan said it will provide $60 billion. Europe has already promised about $200 billion.
“But even these resources may not be sufficient to bail out both should that be required, not to mention that in such a dire scenario some innocent bystanders may well need IMF support,” he said. “More fundamentally, though, we do not think that ever-larger bailouts are a long-run solution for the euro zone’s underlying problems.”