{"id":550031,"date":"2022-10-11T03:48:22","date_gmt":"2022-10-11T03:48:22","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/11\/the-world-bank-and-imf-dont-have-bottomless-bailout-capacity\/"},"modified":"2022-10-11T03:48:22","modified_gmt":"2022-10-11T03:48:22","slug":"the-world-bank-and-imf-dont-have-bottomless-bailout-capacity","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/11\/the-world-bank-and-imf-dont-have-bottomless-bailout-capacity\/","title":{"rendered":"The World Bank and IMF don\u2019t have bottomless bailout capacity"},"content":{"rendered":"

<\/a> Are the IMF and World Bank stretched too thin?<\/strong> Economists are concerned that world\u2019s biggest lenders are stretching themselves too thin bailing out emerging market economies, leaving them with less space to maneuver should future crises arise, the Wall Street Journal<\/a> reports. The IMF had a record USD 135 bn of loans outstanding as of the end of September \u2014 up 45% from 2019 \u2014 while the World Bank\u2019s lending has risen 53% since 2019 to a record USD 104 bn in September. Since the pandemic, the two lenders have also shifted their focus from short-term loans with strings like spending cuts and policy overhauls attached to looser, longer-term emergency loans.<\/p>\n

Economists want them to tighten their pockets:<\/strong> \u201cNow with a potential of a global recession and many countries having bouts of payment problems, they need to go back to their original function,\u201d said a former World Bank official. \u201cThey are the lender of last resort.\u201d<\/p>\n

MEANWHILE- BoE doubles down on bond market support amid crisis:<\/strong> The Bank of England (BoE) introduced a handful of measures to relieve pressure on pension funds and alleviate worries about its emergency purchase program expiring at the end of this week, according to a BoE statement<\/a>. The bank brought in the two-week emergency support at the end of September after Prime Minister Liz Truss and her numbers guy Kwasi Kwarteng set off a historic fire sale of UK assets and sent the gilts market into cardiac arrest with their unconventional mini-budget, which Included GBP 45 bn in unfunded tax cuts. The government has since U-turned on much of the budget. We broke down the gilts crisis in a nifty explainer here<\/a>.<\/p>\n

Also worth knowing about this morning:<\/strong><\/p>\n