U.S. Is Reassessing Plan to Sell IMF Gold, Senior
Treasury Official Says
By Jeremy Pelofsky
U.S. Rethinking IMF Gold Sale, Senior Treasury Official Says
Washington, July 22 (Bloomberg) -- The Clinton
administration is exploring alternatives to selling gold reserves
of the International Monetary Fund to fund a debt-relief plan for
the world's poorest nations, a senior U.S. Treasury official
said.
The administration's proposal that the IMF sell up to 10
million ounces of gold has drawn fire from U.S. Congress members,
gold-mining companies and gold-producing nations, some of which
are in line to receive the debt relief.
Signaling the Congress has the upper hand in the debate, the
Treasury official told reporters on a conference call that while
selling gold is the only viable option now, the U.S. is seeking
other ways to use the gold to raise money. The administration is
seeking a solution that would avoid further depressing gold
prices and win support from Congress as well as from the rest of
the IMF.
Earlier today, House of Representatives Banking Committee
Chairman Jim Leach said he opposes the sale of the IMF's gold on
the open market to fund debt relief.
Leach's opposition could scrap the open-market sale because
the move requires approval of 85 percent of the IMF's members,
and the U.S. holds an 18 percent share. Congressional
authorization is required for the sale to go forward, and the
banking committee has jurisdiction over the issue.
©1999 Bloomberg L.P. All rights reserved. Terms of Service, Privacy Policy and Trademarks. |
