G20 to agree to increase IMF resources: source

3rd November 2011, Comments 0 comments

The world's biggest economies will agree to increase the International Monetary Fund's resources by allowing countries to make voluntary contributions, a source close to negotiations said Thursday.

"States that wish to, can, from around the autumn of 2012, raise their bilateral participation in IMF resources," said the source, quoting a paragraph from the G20 declaration, to be issued Friday at the end of their summit.

The fund's resources were boosted by a deal a year ago doubling the contributions of IMF permanent member states.

That agreement was meant to take effect a year from now but several national parliaments have yet to ratify it, so in the meantime member states had made temporary resources available to the IMF through lending agreements.

But under the deal in the communique, those temporary arrangements would now become permanent if the member countries chose to make them so, the source said.

British Prime Minister David Cameron said earlier Thursday that his country was prepared to boost its contribution to the IMF. British finance minister George Osborne confirmed that world leaders had also discussed the matter.

© 2011 AFP

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