Calling the IMF the 'first line of defence' amid the global economic and financial crisis, the Treasury Department appealed to lawmakers to approve a total of US$108 billion (S$162 billion) in new funding.

'A well-equipped IMF is in the national interest,' the Treasury said in a statement. 'The recovery of the global economy is critical to restoring US exports and jobs.'

The Treasury recalled that at a Group of 20 summit last month in London Mr Obama 'secured agreement to increase the IMF New Arrangements to Borrow (NAB) by up to US$500 billions, of which the United States committed up to US$100 billion.'

Mr Obama has asked Congress to approve the US$100 billion increase and an US$8 billion increase in the US quota in the 185-nation IMF as part of a supplemental budget bill for fiscal 2009, which ends Sept 30.

However the prospect of winning lawmakers' approval is unclear, after the government has poured more than a trillion dollars into the economy and businesses to try to unblock frozen credit and stimulate growth.

Treasury Secretary Timothy Geithner pointed out that the United States cannot recover from the worst global slump since the 1930s without recovery in other countries.

'The global economic crisis is seriously affecting emerging markets and developing countries, which are now experiencing severe economic declines and massive withdrawals of capital. The recovery of the global economy is critical to restoring US exports and jobs,' the Treasury said. -- AFP