By Johanna Treeck
WASHINGTON (MNI) – The Group of 20 will reach a convincing decision
during the course of Friday on an expanded global financial firewall for
the International Monetary Fund, European Union Economic and Monetary
Affairs Commissioner Olli Rehn told MNI.
“I am confident that we will have a convincing decision form the
G20 concerning the global financial firewall today. It is very important
for the sake of financial stability and the world economy,” Rehn told
MNI on the sidelines of the G20 finance ministers meeting.
“Our aim has been to reach a financial firewall or around E400
billion, I trust that this objective will be reached,” he added.
The debate over increasing IMF lending resources to deal with the
spillover from the European sovereign debt crisis will be the key issue
at the Spring meetings of the IMF Saturday.
The IMF initially sought $500 billion but has since dialed that
back to $400 billion, and total new pledges collected this year come to
about $320 billion, including $60 billion from Japan and $200 billion
from the Eurozone announced previously.
The United States and Canada have already said they have no
plans to contribute additional resources to the IMF.
Asked whether the new firewall would be sufficient to calm fears
over Spain, Rehn said increased funds are “not targeted towards any
particular region or country, this is aimed at supporting the
stabilization of the global economy.”
Rehn said Spain is “on track in tackling its fiscal structural
challenges and we support the determinations of the Spanish government.”
–Frankfurt newsroom +49 69 72 01 42; e-mail: jtreeck@marketnews.com
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