The International Monetary Fund said yesterday it would seek up to $500 billion in new financial firepower as the European debt crisis increasingly threatens the global economy.

With several European countries veering on recession and Greece on the brink of default, the IMF said it lacks the resources to be the planet’s lender of last resort.

“Based on staff’s estimate of global potential financing needs of about $1 trillion in the coming years, the Fund would aim to raise up to $500 billion in additional lending resources,” it said in a statement.

The IMF said the $500 billion includes the recent European commitment to add about $200 billion to its resources.

“At this preliminary stage, we are exploring options on funding and will have no further comment until the necessary consultations with the Fund’s membership have been completed,” the 187-nation institution said.

The United States, the biggest stakeholder in the IMF, reiterated that it would not ask Congress to boost the IMF’s war chest.

“We continue to believe that the IMF can play an important role in Europe, but only as a supplement to Europe’s own efforts,” Treasury spokesman Kara Alaimo said in an email to AFP.

“Europe has the capacity to solve its problems. The IMF cannot substitute for a robust euro area firewall,” she said.

“We have told our international partners that we have no intention to seek additional resources for the IMF.”

The IMF funding statement followed an executive board meeting Tuesday to discuss the adequacy of its resources – currently about $385 billion in available funds.

IMF managing director Christine Lagarde said Tuesday that the discussion was held at the request of the membership and the “general support” of the Group of 20 major economies.

Ms Lagarde said the board had recognised the importance of making sure the Fund had enough resources “to help defuse the current global economic weaknesses and regional challenges.