Swiss to lend IMF up to $10 bn for crisis

Switzerland will lend the International Monetary Fund (IMF) up to $10 billion as part of an international effort to strengthen the global financial system, the Swiss government said today.

The government decided in a special meeting to provide the IMF with the fixed-term credit line, the Finance Ministry said.

The loan will be part of a larger package pledged by the Group of 20 world leaders who met in London earlier this month. They agreed to strengthen the IMF with $750 million in additional funds. Those loan resources can be used to help countries whose finances have been devastated by the world financial crisis.

The money is to be granted by the Swiss National Bank and backed by the government's guarantee, the ministry said.

The credit line is contingent on parliament approval, it said.