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IMF seeks funds for EU debt relief

By Fu Jing (China Daily)

08:42, January 30, 2012

DAVOS, Switzerland - In response to widespread anxiety over funding sources for debt relief in Europe, the head of the International Monetary Fund gave assurances that "many countries" have committed to contributing financial resources.

Christine Lagarde, managing director of the IMF, said it is not a good time to go into details about which countries have already made a commitment. She said finalizing these deals requires long negotiations.

"I can tell you that we are in the process of negotiation, and many countries have already committed to making such a contribution," Lagarde told China Daily over the weekend at the annual meeting of the World Economic Forum.

Lagarde said she plans to make a case for why emerging countries should lend aid to the ailing European economy on the basis of four reasons.

First, because all countries are interconnected and dependent economically, no country can be immune from the crisis. Second, the commitment of resources shows confidence in the world economy, she said.

Lagarde said the contribution is used to build up a financial firewall and investor confidence. It will likely not be used, she said.

Lastly, even if the funds are used, they will be paid off with stable returns as our previous investment experiences have already shown, said Lagarde, who recently visited emerging economies, such as South Africa and China, to mobilize resources.

Lagarde did not say whether she would accelerate the pace of reforms to IMF voting rights and governance to attract more resources, which emerging countries such as China, India and Mexico are clamoring for.

In an earlier interview, Li Daokui, a policy advisor with China's central bank and a professor of economics with Tsinghua University, said the Chinese government will contribute to the IMF only if it sees a viable rescue plan from the European Union.

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Leave your comment5 comments

  1. Name

Sam Teng at 2012-01-31175.139.83.*
The question of China help over EU debt through the IMF should be studied carefully on how the money is used. Maybe China extend the help to EU countries who are friendly to China individually rather than through the IMF where the money may be misused.
dave at 2012-01-31184.66.11.*
China should consider non-interference of the EU in Middle East countries" stability as one condition for contribution to the IMF. Otherwise EU/Nato will use the money to carry out bombing of countries they would like to subvert.
PD User at 2012-01-3180.94.16.*
2012-1-30.All the thruth.Even to try decide from government of China and Bank.To give give.In China to become big natural catastrophy die people destory economy.They support chinese nation?China oneself to help oneself to show own talent's to overcome all problems.Today living many poor chinese people's their neede to help.UE to be wealthy not death with hungry.China should to help Africa they be poor.How chinese family's to be able have in family 3-4 car's yep help.
romanov at 2012-01-3180.94.16.*
2012-1-30.IMF to confirm to lead bad politic monetary already to give UE to help 150 billion dollar and what?Flap money to lose IMF to become naked At present seek candidate to guzzle Chinese. To look US and Russia not to have money UE!No to wait lose money.UE oneself to destory oneself to be abstract's economical organization to contradict to logic health normal economy.
helen at 2012-01-30203.82.92.*
The IMF, controlled by the United States and the EU senior members always set unreasonable conditions for helping sovereign nations- often tied to political agenda of the United States.Seeking fund from China to help out the IMF should therefore come with conditions attached. China is not going to throw its wealth recklessly and be bashed by the same people seeking help!Time to change the structure of the IMF to truly reflect its international status and the aspirations of all nations. Same with the World Bank ....

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