G7 divided on proposal for quick IMF loans-report

BERLIN, March 15 (Reuters) Key members of the International Monetary Fund (IMF) are divided over a new proposal that would make it easier for countries in crisis to get quick cash, a German newspaper reported on Wednesday.

Citing unnamed sources from the Group of Seven industrial nations, the Financial Times Deutschland said the proposal was for the creation of a fund for fast loans to countries that find themselves in a crisis through no fault of their own.

The point of this proposal would be to speed up access to much needed cash for countries in need by making the loans ''unconditional'', the paper said. Until now, credits are provided only after strict examination of each individual case and include strict economic constraints.

The newspaper said the proposal had the backing of Britain, Japan, France and possibly Canada. Opposed to the proposal are the United States, Germany and a number of smaller countries, including Austria, Switzerland and Belgium, it said.

It was unclear who submitted the proposal and the newspaper gave no further details about it.

Reuters HS BST1520