By Lesley Wroughton and Paul Eckert
LOS CABOS, Mexico, June 17 (Reuters) – Leaders of the
world’s major economies are set to confirm they will make new
crisis-fighting loans to the International Monetary Fund even
though some emerging nations are frustrated with the slow pace
of winning more power at the global lender.
The Group of 20 summit in Mexico on Monday and Tuesday will
be overshadowed by Europe’s debt crisis that threatens to
stretch Europe’s own rescue funds, underscoring the need for a
bigger war chest at the IMF.
It remained unclear, however, whether all leaders attending
the summit would sign off on the specific size of their
contributions to the Fund.
China’s Vice Finance Minister Zhu Guangyao said on Sunday
that Beijing will contribute to the $430 billion in new
resources for the IMF, which was agreed by finance ministers in
April, but he did not offer a specific sum.
“We are fully confident that the IMF will realize its aim of
increasing its funds by $430 billion and China will surely pitch
in,” Zhu told reporters in the Mexican resort of Los Cabos.
Japanese Finance Minister Jun Azumi said he expected China
to say how much it will give during the G20 summit, a move that
could prompt other developing countries to follow suit.
Leading emerging nations China, Russia, Brazil and India did
not say in April how much extra they would contribute to the IMF
and sought to tie any new money to further IMF voting reforms
that would give them more clout at the Fund.
The bulk of the extra IMF money will come from Europe. The
Fund has stressed it is not earmarked for helping European
countries exclusively but was for countries affected by the euro
zone turmoil.
Continued…
