IMF moves toward gold sales

WASHINGTON (AFP) — The International Monetary Fund board of governors Tuesday approved a new program that calls for the sale of 403.3 tonnes of IMF gold reserves as part of a wide-ranging financial overhaul.

The plan would create an "endowment" that helps provide a steadier source of income to the international organization that has drastically scaled back on lending.

The program announced April 7 also calls for a 13.5 percent cutback in IMF spending over the next three years.

The governors approved a new investment plan to be activated after gold sales. The gold sales must be approved by the US Congress to allow the US representative to the IMF to approve the change.

"The new income and expenditure framework is expected to cover a 400-million-dollar shortfall projected in the medium term," the IMF said in a statement.

Governors from 176 of the Fund's 185 ...