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Last Updated:[22-06-2012 02:16:46 EDT] Zoom in Zoom out Back to Tradenews

G20 summit- India announces 10 billion USD for debt wracked Eurozone



tradenews LOS CABOS: India on Tuesday announced a $10 billion contribution to the IMF's additional $430 billion financial firewall to help the debt-wracked 17-nation Eurozone so that the faltering world economy is protected against the spread of any financial contagion.

The announcement of the contribution was made by Prime Minister Manmohan Singh in his address at the Plenary Session of the seventh summit of the Group of developed and developing countries (G-20) in this Mexican resort town against the backdrop of growing calls to nations to increase contributions to the International Monetary Fund (IMF) for the bailout fund.

India's contribution along with pledges by other member countries of the five-nation BRICS bloc has helped increase IMF's resources and give a boost to the $430 billion fund being used as a firewall to support struggling eurozone economies.

"The International Monetary Fund has a critical supportive role to play in stabilizing the Eurozone. All members must help the Fund to play this role, I am happy to announce that India has decided to contribute USD 10 billion to the IMF's additional firewall of USD 430 billion," he told the world leaders at the seventh summit of the grouping which accounts for 80 per cent the world's GDP.

India has previously pledged to make contributions to the bailout fund but did not disclose the exact amount of its contribution to the fund.

According to Chinese Vice Finance Minister Zhu Guangyo, the BRICS is committed to pledge USD 60 billion to boost the firewall.

In an announcement late Monday, the IMF said China was offering $43 billion, Brazil, Russia and Mexico $10 billion each, $5 billion from Turkey, and smaller sums from a handful of other up-and-coming economies.

IMF managing director Christine Lagarde said that 12 more countries offered money to the fund during the Group of 20 meeting in the Mexican resort of Los Cabos, bringing the total number of donors to 37.

The contributions show "the broad commitment of the membership to ensure the IMF has access to adequate resources to carry out its mandate in the interests of global financial stability," she said.

"Countries large and small have rallied to our call for action, and more may join. I salute them and their commitment to multilateralism," she added.

The announcement brought an end to the mystery of how much the powerful BRICS countries -- Brazil, Russia, India, China and South Africa -- would provide.
Source: Economic Times




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