IMF is planning to sell over 14 million oz of gold in efficiency drive (MarketWatch)  (08-04-2008)

TEL AVIV (MarketWatch) -- The International Monetary Fund said it is selling than 14.2 million ounces of gold, with a value of $13 billion to cut costs as part of an efficiency drive.

The agency’s plan together with its 185 member countries, is to promote monetary cooperation, foster economic growth and employment, and provide temporary help to countries that have problems with their balance of payments.

In a statement on Monday, Managing Director Dominique Strauss-Kahn said the IMF had made "difficult but necessary choices" to close an income shortfall and make the agency more efficient through a "new and sustainable income and expenditure framework."

With the changes, the IMF's income model would be based largely on generating funds from various sources rather than relying on lending, the agency said.

The proposal faces at least two key hurdles. One is that the U.S. Congress must approve the IMF's proposal to sell gold. And most member countries also will have to enact legislation to expand the IMF's investment authority.

 Source:MarketWatch