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
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