India to fund US $ 14 billion to IMF, $ 3 billion for EU bailout
Amid suggestions of providing further capital to IMF to deal with signs of fresh upheaval in the global economy, Indian officials have indicated that this country is unwilling to provide further assistance as it wants to keep sufficient resources to deal with any potential crisis.
So far, the government of India has agreed to provide $14 billion to IMF with a bulk of it going to boost India's quotas (or voting rights). Still, India will provide around $3 billion under the New Arrangements to Borrow (NAB) that will be used to bailout countries in Europe. A couple of months ago, as reported by TOI, the government had obtained nod for providing Rs 9,000 crore under NAB.
But the sovereign debt crisis, which is driving several European countries on the verge of default and has the potential to destabilize the global economy all over again, has raised demands for more funding to IMF. Apart from the availability of resources, India is also worried about funding to the World Bank as the G-20 had agreed to treble the availability of resources with IMF by 2012. Officials said after all, it was the World Bank that was providing funds to the poor and the developing world. But given the focus on saving Europe from a fresh crisis, the IMF demand is expected to crop up again in Paris where finance ministers and central bank governors are meeting on Friday and Saturday in what is seen as preparations for the G-20 summit in Cannes. At the summit, the heads of states are expected to give a signal that the world is united in averting another crisis. "This time the focus is largely going to be on Europe," said a finance ministry official.
India against more funding for IMF - The Times of India
World have come to full circle
Amid suggestions of providing further capital to IMF to deal with signs of fresh upheaval in the global economy, Indian officials have indicated that this country is unwilling to provide further assistance as it wants to keep sufficient resources to deal with any potential crisis.
So far, the government of India has agreed to provide $14 billion to IMF with a bulk of it going to boost India's quotas (or voting rights). Still, India will provide around $3 billion under the New Arrangements to Borrow (NAB) that will be used to bailout countries in Europe. A couple of months ago, as reported by TOI, the government had obtained nod for providing Rs 9,000 crore under NAB.
But the sovereign debt crisis, which is driving several European countries on the verge of default and has the potential to destabilize the global economy all over again, has raised demands for more funding to IMF. Apart from the availability of resources, India is also worried about funding to the World Bank as the G-20 had agreed to treble the availability of resources with IMF by 2012. Officials said after all, it was the World Bank that was providing funds to the poor and the developing world. But given the focus on saving Europe from a fresh crisis, the IMF demand is expected to crop up again in Paris where finance ministers and central bank governors are meeting on Friday and Saturday in what is seen as preparations for the G-20 summit in Cannes. At the summit, the heads of states are expected to give a signal that the world is united in averting another crisis. "This time the focus is largely going to be on Europe," said a finance ministry official.
India against more funding for IMF - The Times of India
World have come to full circle
