IMF Said to Seek Raising Loan Capacity by $500 Billion

(Corrects to show lending capacity increased by $500 billion, not $1 trillion.)

The International Monetary Fund is proposing to raise its lending capacity by $500 billion to insulate the global economy against any worsening of Europe’s debt crisis, according to a person familiar with the discussions.

The Washington-based lender currently has $385 billion available and wants to lift that to $885 billion after identifying the potential for a $1 trillion global financing gap in the next two years, the person said

To contact the reporter on this story: Simon Kennedy in Paris at [email protected]

To contact the editor responsible for this story: John Fraher at [email protected]