WASHINGTON, April 8 (UPI) -- The International Monetary Fund will sell about $11 billion in gold, representing about one-eighth of its reserves, an IMF spokesman in Washington said.
The international financial organization's board also voted Monday to trim its workforce by 380 jobs, a cut of 15 percent, The Financial Times reported Tuesday.
The plan to sell 403.3 tons of gold, which would be done without disrupting the market, has the backing of the U.S. Treasury but requires the approval of other authorities, including the U.S. Congress. That is unlikely to happen before the presidential election in November, the Times said.
A spokesman for the World Gold Council told the Times that "no one I've spoken to is worried" about the planned sale.
The fund's board is attempting to smooth out its financial situation, which has been adversely affected by financial crises in nations around the world. The fund is heading toward a $400 million shortfall by 2010 as revenues from loans has fallen off, the Times reported.
IMF Managing Director Dominique Strauss-Kahn called the proposed gold sale "a landmark agreement that would put the institution on solid financial footing."
