Russia ready to boost EU fund through IMF: official

26th October 2011, Comments 0 comments

Russia is ready to help boost the size of an EU bailout fund by acting with other countries through the International Monetary Fund, President Dmitry Medvedev's economic advisor said on Tuesday.

"We would prefer to see Russia participate through the International Monetary Fund," Arkady Dvorkovich told the Voice of Russia radio station.

"We will be insisting on this particular mechanism," he said.

Dvorkovich also ruled out the possibility of Russia expanding its European bond purchase programme beyond limited new purchases now being discussed with Spain.

"For now, we have no specific plans to purchase these country's securities," the economic aide said.

Russia has repeatedly said it is prepared to help EU states embroiled in a debt crisis but has until now remained silent on how it would proceed.

Dvorkovich's comments came as chief executive of the European Financial Stability Facility (EFSF) prepared to head to Beijing on Friday to discuss the details of a mooted Chinese eurozone rescue move.

The eurozone wants to beef up its 440-billion-euro ($610 billion) rescue fund to convince markets it has the means to protect highly indebted nations such as Italy.

The state-owned China Daily newspaper said on Wednesday that China and other top emerging economies had agreed to help eurozone countries by contributing to the fund through the International Monetary Fund (IMF).

The paper said that this in turn would boost their voting rights in the Washington-based organisation.

No other leading emerging economy had previously confirmed the existence of the IMF plan. But the English-language daily said the IMF agreement may be written into one of the documents adopted at the Brussels summit.

© 2011 AFP

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