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Brics nations to increase contribution to IMF resources | Brics nations to increase contribution to IMF resources |
(40 minutes later) | |
The Brics economies have said they will increase their contribution to the International Monetary Fund (IMF). | The Brics economies have said they will increase their contribution to the International Monetary Fund (IMF). |
Brics refers to, Brazil, Russia, India, China and South Africa, five of the fastest growing emerging economies in the world. | |
The move comes as the IMF has been looking to boost its finances to help prevent any future financial crisis. | The move comes as the IMF has been looking to boost its finances to help prevent any future financial crisis. |
The Brics nations have also asked for a greater say at the fund. | |
"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 economies said in a statement on the sidelines of the G20 summit in Mexico. | "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 economies said in a statement on the sidelines of the G20 summit in Mexico. |
The nations added that they expect their contributions would be used only after the existing resources had been "substantially utilized". | |
'Deeply worrying' | |
The IMF has been called upon to lend money to countries such as Greece that have been affected by the ongoing sovereign debt crisis in the eurozone. | |
There are concerns that the fund may need to step in again if the debt crisis worsens and spreads to the region's bigger economies like Spain and Italy. | |
To prepare for this eventuality, it has been seeking to shore up its reserves so that it can provide help when needed. | |
Two of the Brics members, India and Russia, said they will enhance their contribution by $10bn (£6.4bn) each. | |
"There is concern that the firewall available may not be adequate to deal with contagion," said India's Prime Minister Manmohan Singh. | |
Mr Singh added that a faltering global recovery and slowing growth in emerging economies had made things more complicated. | |
"The global economic situation is deeply worrying." | |
Meanwhile, the Reuters news agency cited a source as saying that China will contribute $43bn to boost the fund's firepower. |