MercoPress. South Atlantic News Agency

IMF anticipating major storms wants to boost war chest by 600 billion dollars

The IMF headquarters in Washington

The International Monetary Fund is seeking to boost its war chest by 600 billion dollars to help countries reeling from the Euro zone debt crisis, but some nations insist Europe must first do more to support its ailing members, international financial sources said on Wednesday.

Group of 20 officials will discuss increasing IMF resources at a meeting in Mexico City on Thursday and Friday, the first under Mexico's 2012 presidency of the group of developed and emerging economies.

The IMF said it will need 500 billion dollars to lend to member countries in need and IMF sources who were present at an IMF board meeting on the issue on Tuesday told reporters that another 100 billion is needed as a “protection buffer.”

The IMF also estimated there would be a 1 trillion dollars global financing gap over the next two years if global economic conditions worsened considerably, the sources added.

On foreign exchange markets, the reports of plans for increased IMF lending capacity helped boost the Euro.

Euro zone nations have already promised to inject an extra 150 billion Euros into the IMF, which is included in the total estimate. G20 officials in Mexico for the meeting of deputy finance ministers and central bank officials said there was still resistance in some quarters to increase funding.