Washington: The International Monetary Fund board of governors today approved the sale of 403.3 tonnes of IMF gold reserves as part of a financial overhaul that helps boost its sagging coffers.

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 programme announced April 7 also calls for a 13.5 per cent cutback in IMF spending over the next three years.

"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 member countries cast votes, with all in favour of the plan. Approval required a majority of the votes cast.

"With this decisive endorsement, the Fund's members have once again demonstrated their support for reforming key components of the institution's framework, including its financial structure," IMF managing director Dominique Strauss-Kahn said.

"Together with the resounding vote last week to change the representational structure of the Fund, this vote further reinforces the legitimacy of the Fund. I thank the membership for this vote of confidence in the institution's future."

The new plan calling for the endowment requires an amendment of the Fund's Articles of Agreement, which will need to be accepted by at least three-fifths of IMF members.

Source : PTI