19 Jun, 2012, 03.47AM Emerging economies pose conditions on IMF boost
LOS CABOS: Leaders of emerging economies said Monday they were ready to contribute to a fund to prevent future crises but only once the IMF puts in place reforms to increase their influence.
Leaders of the so-called BRICS -- Brazil, China, Russia, India and South Africa -- said in a statement at a summit in Mexico that they were willing to step up their contributions to the IMF but only once existing funds dry up.
The International Monetary Fund, hoping to prevent a worsening of the global economic crisis, called last year for $500 billion in an emergency firewall to support nations at risk of contagion, but the money has fallen short.
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The five BRICS leaders "agreed to increase resources available with the International Monetary Fund. In this context, they agreed to enhance their own contributions to the IMF," said a statement released by India.
The emerging economies did not give concrete numbers. But Brazil's Finance Minister Guido Mantega said that an announcement would come during the summit of the Group of 20 top economies on Monday and Tuesday.
In the joint statement, the BRICS said that they expected their money to be used after current resources "are substantially utilized."
"This would promote adequate burden sharing amongst IMF creditors. 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," it said.
The BRICS leaders met in the Mexican resort of Los Cabos ahead of a summit of the Group of 20 major economies, which will spend two days looking for a way to slam the brakes on a spiraling debt crisis in the eurozone.
The emerging economies' call could be seen as a challenge to the United States, the world's largest economy, which has resisted contributing to the new fund.
President Barack Obama is eager to stem the eurozone's woes, which are clouding over the US economy and his own re-election hopes, but faces intense political resistance at home to new financial commitments.
After Group of 20 finance ministers and central bankers met in Washington in April, the IMF announced a firewall size of $430 billion but has come up with only $340 billion in contributions.
Mantega, the Brazilian finance minister, said he expected the total fund to be around the $430 billion announced by the IMF after pledges by emerging economies.
The eurozone is by far the largest contributor, promising some $200 billion, raising concerns by some potential contributors that the firewall would eventually turn into a new European bailout fund.
Japan has contributed $60 billion, while Britain, South Korea and Saudi Arabia have each pledged $15 billion. Singapore and other European governments have also contributed smaller amounts.
Japan said that it made its contribution with the hope that other countries would follow suit.
"We also expect other countries, like our good neighbor China, to express its will to enlarge its credit line," Japanese foreign ministry spokesman Yutaka Yokoi told reporters.
"This is now other countries' turn," Yokoi said. "I think the G20 summit will be another good chance for other countries to make their commitment."
Yokoi said that Mexican President Felipe Calderon, the host of the summit, said that his country planned to contribute to the fund when he met with Japanese Prime Minister Yoshihiko Noda
Economic Commission Deputy Mahma Khalil, that the question of change changing the shape of the local currency after you delete the three zeroes of which does not require new legislation of its own because the law of Iraqi banks allowed the central bank to issue a new currency and select the shape..........................................the project is very important for the Iraqi economy because it will reduce the liquidity of large and estimated at (33 ) trillion dinars, [and he emphasized] particularly that Iraq is on the verge of financial Moisnath increase for the coming years great increases in wealth, this fact thus REQUIRES that implementation of the project to delete the zeros is essential and must be applied.
Bluedog ............so this says no new LAWS and that Shabibi said 3 or so weeks ago He was READY. Today we see a Article of Electronic banking the Banks are talking to themselves and the ATMs and Shabibi told them to boost to 250 billion in Liquidity for the month of JUNE.
This well respected Economist says increase for the coming years great increases in wealth, this fact thus REQUIRES that Implementation of the project to delete the zeros is essential and must be applied. He also is saying that Iraqs Economy will stay at a stand still till this is done.
In my prior article Emerging economies pose conditions on IMF boost you do not find Iraq and remember Iraqs growth was to surpase Chinas per Hiliary so why is Iraq not being mentioned lol well its shhhhhhhhh for right now IMO. But next meeting of this nature Iraq will be at the top of the donor list. Its been a long day for me I had a great deal more to bring but work comes first to me I will be posting alot more soon.