related article .. link .. *U.S. Treasury Secretary Tim Geithner's Trip to India on June 27-28 Postponed ...
Wonder if this relates to Tranching .. Link .. and I wonder if the IMF is invested in Iraqi dinar and if the issued bonds are (possibly foreign currency) which countries are buying in hopes of making a profit with the "reset" of the global economy? (wishful thinking?)
A bond is a formal contract to repay borrowed money with interest at fixed intervals (semi annual, annual, sometimes monthly).[2]
The main examples of subordinated bonds can be found in bonds issued by banks, and asset-backed securities. The latter are often issued in tranches.
The senior tranches get paid back first, the subordinated tranches later.
Related Article .. link *Worldwide Package Coming From Fed, ECB & IMF ...
And Read .. link .. *The answer to the European debt situation? New SDR Basket? (Note: exchange rates quoted at noon each day in the London market and posted on IMF Site)
21 Jun, 2012
India's IMF contribution is not aid
The government has pledged $10 billion as its contribution towards a planned International Monetary Fund's cash chest to tackle the European crisis. So does that mean that Indians will pay for the rescue of the troubled European countries? Or does this amount to giving away precious dollars at a time when foreign inflows are slowing? No, the pledged amount will remain part of India's reserves. Rishi Shah explains:
IS INDIAN CONTRIBUTION AN AID?
No, it is not a giveaway. India is simply buying bonds from the IMF. These bonds are not free aid to the ailing European economies but financial instruments that guarantee safe and reasonable returns. The notes would provide a return of average interest rate of SDR's over the past three months. SDR, or special drawing right, is a reserve currency created by the IMF to supplement the existing reserves of member countries. After the global financial crisis of 2008, the Group of Twenty industrialized and emerging market economies agreed on April 2, 2009, to triple the International Monetary Fund's lending capacity to $750 billion, enabling it to inject extra liquidity into the world economy during times of crisis. India had then agreed in principle to inject $10 billion to the IMF war chest.
Read Full Article .. Here
