Thursday 2 February 2012

Saudi Arabia may seek IMF sway in exchange for riches - Politics & Economics - ArabianBusiness.com

Saudi Arabia, which has more than $500bn in foreign assets, may demand a greater share of voting rights at the International Monetary Fund in exchange for providing the lender with more money.
Saudi Arabia’s reserve position at the Washington-based fund more than doubled to SR18.2bn ($4.9bn) last year from SR7.4bn in 2010, according to Saudi central bank data. In 2007, it had a SR2.7bn position with the IMF, the data showed. The cost to insure Saudi debt on Jan 31 was less than half the Middle East sovereign average, according to data provider CMA.
The IMF’s Managing Director Christine Lagarde, who visits the kingdom’s capital on Feb 4, has urged members states to contribute $500bn in new lending resources to avoid a 1930s-style global depression. Saudi Finance Minister Ibrahim al-Assaf last week said that the world’s top oil exporter may be willing to raise its contribution to the fund.

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