China pump up IMF firewall

Led by China, emerging economies pledged huge sums to the International Monetary Fund’s global firewall Monday, helping it raise $456 billion in resources as the eurozone crisis rages. In a clear statement of their new force in the world economy, rising economic powers brought some $95.5 billion in new money to the table for the IMF during the G20 summit in Mexico, pushing it beyond its $430 billion target.

But the money also came with a warning that things had to change at the Fund, long dominated by the now troubled economic powers of Europe and the United States, which itself has not contributed to the firewall.

In an announcement late Monday, the IMF said China was offering $43 billion, Brazil, Russia, India and Mexico $10 billion each, $5 billion from Turkey, and smaller sums from a handful of other up-and-coming economies.

IMF managing director Christine Lagarde said that 12 more countries have offered money to the fund, bringing the total to 37. The contributions show “the broad commitment of the membership to ensure the IMF has access to adequate resources to carry out its mandate in the interests of global financial stability,” she said.

AFP