Europe Economy

US Has 'No Intention' of Giving More Money to IMF

The US Treasury has "no intention' of providing additional money to the International Monetary Fund, a Treasury official told CNBC Wednesday, even though the IMF is hoping to raise an additional $500 billion to help fight the European debt crisis.

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The Treasury spokesperson said that Europe has the capacity to solve its own problems and the IMF cannot substitute for a robust euro-area firewall.

“Based on staff’s estimate of global potential financing needs of about $1 trillion in the coming years, the Fund would aim to raise up to $500 billion in additional lending resources," an IMF statement said.

"This total includes the recent European commitment of about $200 billion in increased Fund resources. At this preliminary stage, we are exploring options on funding and will have no further comment until the necessary consultations with the Fund’s membership have been completed," it added.

Earlier, a source had told CNBC the IMF was seeking to raise another $600 billion.

That news echoed media reports last December, which said that the IMF was planning to put together $600 billion to lend to troubled euro zone states, but the financial institution denied the reports.

In November, a report in Italian newspaper La Stampa which said that the IMF was preparing an aid package worth up to 600 billion euros ($798 billion) for Italy boosted European stocks, but was quickly denied by officials from the Fund.

The additional funding needs will be discussed at the G20 meeting in Mexico City in February, the source said.

- Steve Liesman contributed to this report