Czech cbank governor says loan to IMF poses risk to foreign exchange reserves.

By bne IntelliNews December 20, 2011
Lending the IMF some EUR 3.5bn as part of a package aimed at helping distressed EU courtiers would pose a risk to the banks foreign exchange reserves, central bank governor Miroslav Singer told Hospodarske Noviny daily. If the government decides on extending the loan, exposure to the IMF will be raised to some 28% of the banks FX reserves. Late on December 19, eurozone finance ministers agreed on boosting the IMFs lending capacity by EUR 150bn and said non-eurozone members like the Czech Republic, Denmak, Poland and Sweden will also participate in the financial package after winning approval by their parliaments. In a reaction to the statement, Czech finance ministry spokesman Ondrej Jakob told CTK newswire that for now the country cannot be mention among the states that will participate in the package. Jakob said that the government has not yet taken a decision on whether or not it will provide the loan.

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