The International Monetary Fund (IMF) is planning to expand its lending capacity to $1 trillion from the current $385 billion toprotect the global economy fromthe negative consequences of the European debt crisis, according to an official at a Group of 20 nation.

The expansion discussions will probably take place at the coming G-20 Finance Chiefs meeting in Mexico on Feb 25-26, where contributions from China, Brazil, Russia, India, Japan and oil-exporting nations are the main base for the expansion.