US rules out more funds for IMF

WASHINGTON - US Treasury Secretary Timothy Geithner said Tuesday that the United States has "no intention" to seek additional resources for the International Monetary Fund (IMF).

"The IMF has substantial financial resources available today, and it has the ability, as it has demonstrated in the past, to mobilize temporary resources if that were necessary to help contain the damage from a further intensification of the crisis in Europe," Geithner said in a prepared testimony before the House Committee on Financial Services.

"For these reasons, we have no intention to seek additional US resources for the IMF," he added.

Geithner admitted the European financial crisis has already caused significant damage to economic growth in the United States and around the world, and the United States has a strong interest in a successful resolution of the crisis.

He praised the role the IMF has played so far in mitigating the crisis in Europe, saying the IMF has provided advice on the design of reforms, a framework for public monitoring of progress, and support for programs in Greece, Ireland, and Portugal in partnership with Europe, which has assumed the majority of the burden.

"These actions have helped limit the damage from the crisis to the United States and to economies around the world."

He also called the role of the US Federal Reserve's dollar swap lines with the European Central Bank (ECB), and central banks of other major economics "critical" to help the ECB to rein in the debt crisis.

Geithner said it is in the interest of the United States that the IMF is able to continue to play a constructive role in Europe.

However, IMF resources can supplement, but not substitute for a strong and credible European firewall and response, he added.

Geithner said the European economies at the center of the crisis have made "significant" progress.

"We hope they are able to build on these efforts in the coming weeks and months to put in place a more durable foundation for financial stability and economic growth," he said.