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IMF sells 403 tons of gold

22 December 2010 14:54 (UTC +04:00)

Baku - APA-Economics. The International Monetary Fund has completed the sale of 403.3 tonnes of gold, as part of its two-year efforts to bolster the lenderâ€™s finances that also saw the Reserve Bank of India purchasing 200 tonnes of the precious metal last year, The Hindu reported.

The multilateral lenderâ€™s executive board in April 2008 proposed to sell 403.3 tonnes of its gold holdings and the proceeds would be utilised to offer concessional loans to low income nations, among others.

On Tuesday, the IMF said it has completed the limited gold sales programme, which was approved by the executive board in September 2009.

â€œAll gold sales were at market prices, including direct sales to official holders,â€ the lender said in a statement without disclosing details of final sales.

â€œThese sales are a central element of the new income model for the IMF... They will also increase the Fundâ€™s capacity to support low income countries,â€ it added.

India bought 200 tonnes of gold from the IMF late last year for about $6.7 billion. The transaction was carried out in two weeks from October 19-30, 2009.

As part of the programme, other countries that bought gold include Bangladesh, Sri Lanka and Mauritius. Each of these nations had purchased 10 tonnes of the precious metal.

In the wake of the global financial turmoil in 2008-09, IMF has been playing a key role in rejuvenating the system and has extended billions of dollars worth assistance to countries such as Greece and Ireland.