India announces $ 10 billion for debt-wracked eurozone

[Mech]

Its a loan and giving loans to the IMF is good. Secures our trade and gives us plenty of leverage.

Plus, we dont bring security threats posed by Chinese investments to the table.

 

[xuxu1457]

http://www.chinadaily.com.cn/xinhua/2012-06-19/content_6224017.html1st
LD: China to contribute 43 billion USD to IMF recapitalization
LOS CABOS, Mexico, June 18 (Xinhua) -- China announced Monday that it will contribute 43 billion U.S. dollars to the recapitalization of the International Monetary Fund (IMF) at the G20 summit being held here.

The summit discussed the issue of boosting funding for the IMF, and the G20 leaders agreed that in order to address the risks and challenges the world economy is currently faced with, it is necessary to ensure that the IMF is sufficiently capitalized.

China has always made it clear that it will not be absent in IMF recapitalization, and holds that the recapitalization has to be based mainly on quotas and the top imperative thing is to implement the IMF's 2010 quota and governance reform package.

China has repeatedly expressed the hope that relevant countries should go through the approval process of the plan as soon as possible in order to ensure that the reform package will be effective before the 2012 IMF annual meetings in October.

 

[Shardul.....the lion]

Even China is pumping 43 billion$. Possibly effort by BRICS to increase the clout in IMF.


China rounds off push for bigger IMF war chest

By Lesley Wroughton and Paul Eckert

LOS CABOS, Mexico (Reuters) - China on Monday offered $43 billion to the IMF's crisis-fighting reserves, rounding off a global push to nearly double the Fund's war chest to $456 billion to help protect countries from fallout from the euro zone debt crisis.

China's contribution was part of a pledge by Group of 20 countries made in April to supply the International Monetary Fund with extra firepower.

"These resources are being made available for crisis prevention and resolution and to meet the potential financing needs of all IMF members," said IMF Managing Director Christine Lagarde.

"They will be drawn only if they are needed as a second line of defense" when other IMF loans have been depleted, she said in a statement during a Group of 20 summit in Mexico.

The leaders of BRICS nations -- Brazil, Russia, India, China and South Africa -- said earlier that they "agreed to enhance their own contributions to the IMF" but had insisted that the money be used only after existing funds were depleted.

According to a chart published by the IMF, Brazil, Russia and India each pledged $10 billion, while South Africa offered $2 billion. G20 host Mexico also contributed $10 billion.

"Countries large and small have rallied to our call for action, and more may join," said Lagarde, who said total pledges had reached $456 billion -- "almost doubling our lending capacity."

The BRICS sought to tie the loans to long-delayed reforms that would give the developing world more say at the Washington-based Fund by boosting their voting power as shareholders.

"These new contributions are being made in anticipation that all the reforms agreed upon in 2010 will be fully implemented in a timely manner, including a comprehensive reform of voting power and reform of quota shares," the BRICS leaders said in a joint statement.

In their public remarks in Los Cabos, Chinese officials declined to discuss sums and stressed the need to implement IMF quota reforms agreed in 2010.

"If the quotas are not commensurate with the relative economic weight of the different countries, then it has to be changed," said He Jianxiong, director general of the international department of the People's Bank of China.

Growth of the emerging countries, which has far outstripped that of the rich world in recent years, made it "only natural that the quotas should be shifted from developed economies to developing economies," he told reporters.

The five BRICS nations represent 43 percent of the world's population and about 18 percent of global economic output. They have about $4 trillion in combined reserves, with the lion's share held by export powerhouse China.

Emerging economies have long demanded more say at institutions like the IMF to reflect their growing clout. Their frustrations have grown with the likely delay in implementing the 2010 deal that would boost their voting power and make China the third-largest voting member of the IMF.

The Chinese central bank's He indicated that Beijing still has to win over a skeptical public on the need for China, which still has hundreds of millions of poor people, to help bail out European countries with higher standards of living.

Describing money loaned to the IMF as an investment and a useful foreign reserve management tool, he said "it is actually a good investment in terms of safety, liquidity and yield."

The big emerging economies are also seeking more influence in the world economy by planning wider use of currencies other than the dollar and euro. The BRICS statement on Monday said the five leaders had "discussed swap arrangements among national currencies as well as reserve pooling."

BRICS finance ministers and central bank governors were instructed to study the swaps and pooling arrangements and relevant internal legal issues and report to next year's BRICS leaders' summit in South Africa, the statement said.

"The pool is mainly a preventative measure," said He.

Brazilian Finance Minister Guido Mantega told reporters the plan to pool reserves "will increase confidence by making sure there is more ammunition available if there is a problem."

The BRICS' contributions to the proposed pool will be decided by size of each country's foreign exchange reserves, Mantega said. (Additional reporting by Krista Hughes; Editing by William Schomberg and Padraic Cassidy)

China rounds off push for bigger IMF war chest - Reuters -

 

[cloud_9]

indian govt should use it on there own economy which is getting down day by day with inflation & ppls dont have food to eat, instead of showing offf to the world tht they are helping europe (which i doubt).

surely europeans will laugh on it..but who cares indians must be proud of it...

With the addition of new pledges from 12 nations that also includes Russia, India and South Africa, the Washington-based lender said it now has received funding commitments of $456 billion, up from the roughly $430 billion it said it had secured in April. The temporary contributions will add to the $380 billion the IMF currently has available for lending.
The meeting’s host said Mexico would contribute $10 billionto the fund, matching pledge amounts made here by Russia, India and Brazil. China said it will provide $43 billion, while South Africa, Colombia, Malaysia, New Zealand and the Philippines were among nations offering smaller amounts.

*Never Go Full Retard*

 

[Gandhi G in da house]

What ? What ? What ? Our credit rating just went from stable to negative, rupee is at an all time low and here we are giving money to others . This govt. is so full o **** .Can someone please explain what was the need for this at this moment ?

 

[kkacer]

China = 43 Billion

 

[ashok321]

Its a contribution to IMF kitty to further india,s position , leverage and clout, so far its USA with biggest clout, and countries like china india have protested to have bigger quota for bigger economies.

China voting rights in the IMF four percent, quota same...
India voting rights two and half percent, quota same...
Pakistan just half percent both ways....
USA seventeen percent both ways...

 

[KRAIT]

Guys you are trying to educate people who can never think above Indian poverty and toilets...............Each and every nation makes such investments, implements new policies for better health of their own economy. Look at BSE Sensex today it is showing signs of recovery where it tanked 300 points yesterday. If you have been following greece election and BSE, they already have correlation. A early as Euro crisis gets over, every country can relax and focus more on their economic growth rather than taking measures to nullify or minimize the effect of this crisis.

 

[Kyusuibu Honbu]

What ? What ? What ? Our credit rating just went from stable to negative, rupee is at an all time low and here we are giving money to others . This govt. is so full o **** .Can someone please explain what was the need for this at this moment ?

A gesture of goodwill to one of the largest trading partners of India.

 

[xuxu1457]

sounds really funny, we developing countries borrow money to rich countries for keeping their high level life

 

[ashok321]

While richer economies conribute, poor countries borrow from the same kitty.
pakistan should be happy that IMF kitty is growing, because it needs more of it than Sudan, if you check thier borrowing trend.

 

[KRAIT]

What ? What ? What ? Our credit rating just went from stable to negative, rupee is at an all time low and here we are giving money to others . This govt. is so full o **** .Can someone please explain what was the need for this at this moment ?

As soon as Euro crisis gets over, it will indirectly affect our economy in positive way....and things will get better...can't get into detail....Just that we are doing this for our own good , its not a charity or goodwill gesture. In international scenarios there are no such things.

 

[ashok321]

What ? What ? What ? Our credit rating just went from stable to negative, rupee is at an all time low and here we are giving money to others . This govt. is so full o **** .Can someone please explain what was the need for this at this moment ?

To avoid euro crisis to thwart any impending domino effect because Spain is looking to borrow 125 billion euros. Indian currency went down because the dollar became strong, even pakistani rupee was hit wih the same punch. india too is borrowing from the same institution, hence no worry.

 

[sherindian]

great decision by goi.

 

[ashok321]

During american reccesion crisis, manmohan bought US treasury bonds worth 7 billions, to give support to USG during bank bailout crisis.

Manmohan is financial guru, he was RBI chairman once.

IMF Members' Quotas and Voting Power, and IMF Board of Governors