BRUSSELS (MNI) – The European Commission Tuesday said it was
confident that EU countries would make good on their pledge to boost the
IMF’s resources by E200 billion, a measure agreed by EU leaders last
week to help protect against contagion from the sovereign debt crisis.
Eurozone governments yesterday confirmed that they intended to lend
E150 billion in total and that individual government’s contributions
would be in proportion to their quotas in the IMF.
However, some countries will need the approval of their parliaments
or central banks before their commitments can be finalized, a Commission
spokesman noted.
Germany, the largest Eurozone economy, is slated to contribute
E41.5 billion via the Bundesbank. But Bundesbank President Jens Weidmann
said last week that Germany’s contribution was conditional on
participation of non-European members of the IMF. So far, the United
States — the biggest single IMF member — is resisting a funding
increase.
EU officials hope that non-Eurozone EU members will contribute the
remaining E50 billion, but the UK, which would be expected to contribute
the lion’s share of that amount based on its current IMF commitments,
has suggested it may only put in 10 billion pounds sterling. It has also
said the commitment should be made as part of a G20 agreement.
G20 deputy finance ministers will meet in January 2012.
–Brussels bureau: +324-9522-8374; pkoh@marketnews.com
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