UK willing to send US$11b to IMF - Pushes for Europe to contribute more to fund

Published: Thursday | September 3, 2009


European governments should band toge-ther to give the International Monetary Fund (IMF) a US$75 billion boost, Britain's treasury chief, Alistair Darling, said Monday.

In an article for the Guardian newspaper, Darling says Britain is ready to provide up to an extra US$11 billion to the fund.

The comments came ahead of a meeting of the Group of 20 (G-20) finance ministers this week in London.

A joint letter by the French and German finance ministers, obtained by The Associated Press, said each nation was "ready to increase" their contributions to US$26.5 billion (euro18.5 billion) and US$35.95 billion (euro25 billion), respectively.

In the letter, addressed to Swedish Finance Minister Anders Borg - Sweden currently holds the EU's rotating presidency - Christine Lagarde and Peer Steinbrueck also called on "our EU partners to join us" in an effort to increase the European Union's overall contribution to the IMF.

In April, participants at a G-20 summit in London announced they would triple the IMF's funding to US$750 billion. They agreed to expand a special IMF fund to help members' foreign exchange reserves by US$250 billion, and to give another US$250 billion to the IMF to support trade.

Total contribution

The G-20 is to meet again next month in Pittsburgh, Pennsylvania.

European nations have already committed US$100 billion, but Darling called for more.

"Europe should set an example and do more to meet the target _ with the UK ready to provide up to an additional US$11 billion, taking our total contribution to over US$26 billion," Darling wrote, saying leaders had agreed to help the IMF in order to "give it what it needs to support emerging markets and low-income countries most affected by the crisis."

- AP