June 19 (BusinessDesk) - New Zealand is committing to lend the International Monetary Fund another $1.26 billion in the event of global economic turmoil, ahead of announcements expected from today's G20 meeting in Mexico on measures to counter the ongoing Eurozone debt crisis.
The latest US$1 billion (NZ$1.26 billion) commitment is the second such additional commitment in two years, and brings New Zealand's total potential lending to the IMF to NZ$4.1 billion, although the global lending agency has so far only drawn down $320 million from New Zealand.
The last additional commitment, also of $1.26 billion, was in 2010 to support the so-called New Arrangements to Borrow deal, which was organised to stem European debt troubles.
The funds are a loan to the international community, are repayable with interest and may never be drawn on fully, but the request for a further commitment underlines the ongoing fragility of global economic conditions because of the political and economic crisis in the 21 countries of the Eurozone.
What a crock! NZ is broke and has to borrow from IMF with interest, to lend back to the IMF who will lend to the Euro Banks, who are broke. And I'm paying even though I'm nearly broke. How am I supposed to afford a new EBR? Get a loan from the bank? This is better than Monty Python.
You know, I might be happy if the IMF gave us a T-Shirt for helping them out. It would have to be a good one though. Pierre Cardin or something, and not made in China or Bangladesh.
Well at least Sarkozy can keep a lid on spending and tax hikes in France.....
Sadly not, the French public in their infinite wisdom voted him out last month & voted in Francois Hollande, a lefty buffoon, who only needs a red nose & a big pair of shoes to complete the clown look.
Even Big O doesn't want him nearby, he got shunted to the edge of the group photos in Mexico yesterday, it made the news here.
All we can hope for is that he doesn't **** the country up too badly over the next 5 years.
'The Australian PM was berated by the Europeans for lecturing them on economic matters at the G20. This is like the Hindenburg complaining about fire drills.' - S Mikaleff.
So Europe has spent money on social programs that they didn't have. The have borrowed to pay for this spending until no one will lend more. The have achieved the problem with socialism. They have run out of other people's money. Somehow Naom Chomsky looks at this and sees austerity measures at this point in time to be the failure?
Nice Mr Grumpy. 
