By Peter Schroeder - 03/12/12 01:27 PM EDT
A House Republican leader is calling on the White House to oppose a $37 billion International Monetary Fund (IMF) loan package to Greece.
Rep. Cathy McMorris Rodgers (R-Wash.) on Monday will announce her opposition to the deal — the latest in her lengthy campaign against a U.S. role in the European debt crisis.
“At this point, it should be clear that America and the IMF are throwing good money after bad, and the only real solution is for Greece and the European Union to stop their borrowing addiction, instead of papering it over," McMorris Rodgers, the vice chairwoman of the House Republican Conference, said in a statement first provided to The Hill.
Top officials with the IMF on Thursday are expected to meet to discuss a $37 billion loan package aimed at helping Greece navigate its fiscal troubles.
IMF Managing Director Christine Lagarde announced Friday that she will ask the the fund's executive board to approve a four-year loan package for Greece worth roughly $37 billion. The loan is part of a broader $170 billion bailout package the IMF is putting together in conjunction with the European Union.
"The scale and length of the Fund’s support is a reflection of our determination to remain engaged," she said in a statement. "This is an important step that will dramatically reduce Greece’s medium-term financing needs and contribute to debt sustainability."
Republicans in Congress have grumbled about the IMF's involvement in the European debt crisis, arguing that countries indebted due to profligate spending should not be bailed out by taxpayers in other countries. They have introduced legislation in both the House and Senate to block U.S. funds to the IMF from being used in that effort, although those bills are not expected to become law. The United States accounts for about 17 percent of the IMF's budget, and holds roughly the same level of voting power within the organization.
The White House joined other nations in 2010 in committing a larger amount of funds to the IMF. However, administration officials have repeatedly maintained that the United States is not interested in pumping more money into the IMF specifically to assist Europe.
"The challenge Europe faces is within the capacity of the Europeans to manage, and the administration has been clear with our international partners that we are not seeking additional funding for the IMF,” said Lael Brainard, the Treasury Department's undersecretary for international finance at a recent congressional hearing on the debt crisis.