IMF may need more cash for poor nations

By Bill Condie
Updated: 06:23 EST, 12 January 2009

The International Monetary Fund (IMF) says it may need another $150billion (£98.87billion) to help save emerging markets and poorer countries from disaster in the global economic recession.

Managing Director Dominique Strauss-Kahn says European leaders have failed to grasp the seriousness of the problems facing their region.

Cash-straped: Dominique Strauss-Kahn says another £150billion is needed to help emerging markets

In Western Europe, governments are 'behind the curve' in implementing stimulus packages and are 'still underestimating the needs,' said Strauss-Kahn.

The full impact of the downturn has yet to hit the region, where the 'shops are still full', he said.

He warned that the fund will make a 'significant' increase in its $1.4trillion projection of global financial losses and writedowns due to the crisis.

'If in six months from now the crisis has worsened and many other of our members need our help, the demand may be above what we have,' Strauss-Kahn said.

The IMF has already agreed to lend $41.8billion to troubled economies.