This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/uk-15567919

The article has changed 11 times. There is an RSS feed of changes available.

Version 3 Version 4
Eurozone crisis: UK 'preparing to give more to IMF' Eurozone crisis: 'Right' to boost IMF funds - Cameron
(about 2 hours later)
  
The government is preparing to give more money to the International Monetary Fund to help struggling nations, including eurozone states. Prime Minister David Cameron has told the BBC it is "right" to consider boosting funds to the International Monetary Fund at a time of crisis.
BBC political editor Nick Robinson says such a move could mean debt-ridden nations like Greece, Italy or Spain are indirectly helped by British taxpayers. Mr Cameron, in Cannes for a meeting of the G20 industrialised nations, said there was "no risk" to UK taxpayers.
Prime Minister David Cameron is to meet G20 leaders in France to discuss the deepening debt crisis in the eurozone. The BBC's Nick Robinson says it could mean eurozone nations like Greece are indirectly helped by the UK.
He has ruled out direct contributions to the eurozone bail-out fund. The government says it is ready to give more money to the IMF - but not if it is reserved for eurozone nations.
Conservative backbench MP Peter Bone has tabled an urgent question on the eurozone at 1130 GMT - a way of asking a Treasury minister to come to the Commons to make a statement at short notice. The G20 summit is taking place as the Greek cabinet meets in an emergency session. Greek PM George Papandreou looks likely to be defeated in a confidence vote on Friday after growing opposition within his own party to a surprise referendum call on the EU bailout plan.
In Cannes, the UK prime minister told the BBC: "I'm here to support the British economy. When the world is in crisis it is right to consider boosting the IMF."
He added: "No government lost money by lending money to the IMF. There is no risk to British taxpayers of seeing the IMF perform its proper role that's what we have always supported."
UK funding
His spokeswoman said the UK would not contribute "directly or indirectly" to the eurozone bail-out fund.
The UK currently provides £29bn ($46bn) of the IMF's £600bn ($950bn) lending capacity.The UK currently provides £29bn ($46bn) of the IMF's £600bn ($950bn) lending capacity.
About £4.9bn of UK money is held in the IMF's fund but it could draw down up to £29.4bn from the Treasury in certain circumstances.About £4.9bn of UK money is held in the IMF's fund but it could draw down up to £29.4bn from the Treasury in certain circumstances.
Last week UK Chancellor George Osborne told MPs there may be a case for further increasing the budget of the IMF to keep pace with the size of the global economy. Nick Robinson said those struggling countries around the world helped by the IMF "might of course just include a few in the eurozone getting money in effect from the British taxpayer".
But he said: "Let me be very clear, we are only prepared to see an increase in the resources the IMF makes available to all countries of the world.
"We would not be prepared to see IMF resources reserved only for the eurozone."
But Nick Robinson said those struggling countries around the world "might of course just include a few in the eurozone getting money in effect from the British taxpayer".
He said the government now believed there were only three ways out of the eurozone crisis - that the deal agreed last week gets back on track, despite the surprise announcement about a Greek referendum, that Greece leaves the euro or that IMF funding be boosted for struggling eurozone countries.He said the government now believed there were only three ways out of the eurozone crisis - that the deal agreed last week gets back on track, despite the surprise announcement about a Greek referendum, that Greece leaves the euro or that IMF funding be boosted for struggling eurozone countries.
The government points out that no country has ever lost money loaned to the IMF. In a statement to MPs - sparked by an urgent question from Eurosceptic Conservative backbencher Peter Bone - Treasury Minister Mark Hoban told MPs that "at no point have we committed any British taxpayers' money, not to Greece, not to the bail-out fund".
Meanwhile, French president Nicolas Sarkozy and German chancellor Angela Merkel have warned that the next 8bn euro (£7bn) of rescue loans for Greece will be withheld until after a bailout referendum, expected in early December. Greece talks
But he said there "may well be a case for further increasing the resources of the IMF to keep pace with the size of the global economy".
"We stand ready to consider the case for further resources if necessary," Mr Hoban said.
"But let me be clear we are only prepared to see an increase in the resources the IMF makes available to all its members." But he said they were "not prepared" to see IMF resources reserved only for use by the eurozone.
He said instability in the eurozone continued to have a "chilling effect" on the UK, European and global economy and a resolution to the crisis was "in our vital national interest".
He told MPs there was "no doubt the decision by the Greek prime minister has added to the instability and uncertainty in the eurozone" and it was "critical" that all parties stuck to last week's eurozone bail-out deal.
For Labour, shadow Treasury minister Chris Leslie said many people were "very anxious" about safeguarding UK taxpayers' money.
"It would be wrong for the British people to pay twice over through temporary, ongoing euro funds as well as through the IMF itself. The eurozone should not rely principally on IMF money for the bailout and there can be no excuses for eurozone countries not putting up their own funds."
But he added: "If we do indeed see a full and permanent eurozone bail-out fund then we agree that our role should be through the IMF."
Labour backbencher Natascha Engel asked: "If UK taxpayer money is being paid to the IMF and the IMF is paying towards the eurozone bailout how can you guarantee that no UK taxpayers' money is going towards bailing out the eurozone?"
Mr Hoban told her the money different nations contributed towards the IMF goes towards its "general resources" and of 53 IMF programmes worldwide at the moment, only three are in the eurozone.
French president Nicolas Sarkozy and German chancellor Angela Merkel have warned that the next 8bn euro (£7bn) of rescue loans for Greece will be withheld until after a bailout referendum, expected in early December.
The two leaders held talks on Wednesday evening with Greek prime minister George Papandreou to press him to end uncertainty about his country's future in the single currency.The two leaders held talks on Wednesday evening with Greek prime minister George Papandreou to press him to end uncertainty about his country's future in the single currency.
Last week Mr Papandreou announced a surprise referendum on the rescue package drawn up for Greece, indicating its referendum question would focus on whether or not to stay in the eurozone.Last week Mr Papandreou announced a surprise referendum on the rescue package drawn up for Greece, indicating its referendum question would focus on whether or not to stay in the eurozone.
Mr Sarkozy hopes to use the summit in Cannes to persuade cash-rich exporter nations like China to contribute to a one trillion euro (£870bn) European stability fund.Mr Sarkozy hopes to use the summit in Cannes to persuade cash-rich exporter nations like China to contribute to a one trillion euro (£870bn) European stability fund.
On Wednesday, Mr Cameron told MPs that securing a eurozone deal was "urgent" for the global economy.
"It has become even more urgent to put meat on the bones of this plan to show that we're removing one of the key obstacles to global growth, which is the failure to agree a proper plan to deal with problems in the eurozone," he said.
Labour leader Ed Miliband said: "As we saw in 2008, a global economic crisis can only be addressed by global economic leadership. There has been precious little of that in evidence in the past 18 months.
"Now is the time to turn the corner. To set out a plan that addresses the reality of faltering growth and rising unemployment - a plan that faces up to the G20 leaders' first responsibility: the responsibility to lead."