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Senate Defeats Move To Strip IMF Money From War Funding Bill



By Corey Boles, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- A Republican attempt to remove money from a war funding bill that would increase the U.S. contribution to the International Monetary Fund failed Thursday.

The amendment, sponsored by Sen. Jim DeMint, R-S.C., would have stripped out $ 5 billion of funding that would have increased the fund's lending capabilities by $108 billion.

The $5 billion price tag was reached by using a calculation that most countries that borrow money from the fund pay it back over time with interest.

The vote to defeat the amendment was 64-30.

DeMint argued that in the midst of the deepest recession since the Great Depression, now is not the time for the U.S. to be bailing out other countries. He further argued that the U.S. would have no say in how the money was lent out by the IMF.

Senate Foreign Relations Chairman John Kerry, D-Mass., retorted that U.S. exports depended on having strong developing economies capable of buying U.S. products.

He said that in almost every instance, the U.S. has in fact made a profit from the contributions it makes to the IMF, and that the U.S., as the largest economy in the world, has a responsibility to help out those worse affected by the economic downturn.

The $5 billion would be spent over five years.

It is included in the Senate's $91.3 billion bill to fund the wars in Afghanistan and Iraq over the remaining four months of the federal government's fiscal year.

The House war funding bill, which was approved by lawmakers in that chamber last week, didn't include the IMF funding.

The Senate hopes to have a vote on final passage of its bill later Thursday, at which point lawmakers from the House and Senate will have to meet to agree to compromise legislation. This won't likely occur until after Congress returns from its week-long Memorial Day recess next week.

-By Corey Boles, Dow Jones Newswires; 202-862-6601; corey.boles@dowjones.com


  (END) Dow Jones Newswires
  05-21-091539ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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