$10b for debt-wracked Eurozone

Wednesday, June 20, 2012 - Los Cabos—India Tuesday announced a $10 billion contribution to the IMF’s additional $430 billion financial firewall to help the debt-wracked 17-nation Eurozone so that the faltering world economy is protected against the spread of any financial contagion.

The announcement of the contribution was made by Indian Prime Minister Manmohan Singh in his address at the Plenary Session of the seventh summit of the Group of developed and developing countries (G20) in this Mexican resort town against the backdrop of growing calls to nations to increase contributions to the International Monetary Fund (IMF) for the bailout fund.

India’s contribution along with pledges by other member countries of the five-nation BRICS bloc has helped increase IMF’s resources and give a boost to the $430 billion fund being used as a firewall to support struggling Eurozone economies.

“The IMF has a critical supportive role to play in stabilising the Eurozone. All members must help the Fund to play this role, I am happy to announce that India has decided to contribute $10 billion to the IMF’s additional firewall of $430 billion,” he told the world leaders at the seventh summit of the grouping which accounts for 80% the world’s GDP.

According to Chinese vice finance minister Zhu Guangyo, the BRICS is committed to pledge $60 billion to boost the firewall. Besides India and China, the other countries in the bloc are Brazil, Russia and South Africa.—Online