INDIA may contribute $10-11 billion to the International Monetary Fund (IMF), as its contribution to the $500 billion that the global institution is raising from 20 powerful nations for lending to crisis-stricken countries. A decision may be taken in a few days, department of economic affairs secretary Ashok Chawla told ET.
World leaders at the G-20 meeting, held earlier this month in London, decided that they would provide fresh funds to IMF, so that it can triple its $250 billion available for lending to needy countries. Japan and the EU have already committed $100 billion each while China has committed $40 billion, as the IMF seeks to inject cash into the world economy and help it tide over its sharpest decline in decades.
"We are willing to contribute to the pool of funds in proportion to our quota. Should IMF require, we can lend $10-11 billion, for which interest would be paid. A decision on this will be formally communicated to IMF at its spring meeting later this month," Mr Chawla said. India, however, has no plans to borrow from IMF at the moment, he added, quoting Prime Minister Manmohan Singh, who said in London that India has
no such plans.
IMF will also get another $250 billion in Special Drawing Rights (SDR), an overdraft facility for its 185 members. India has no requirement for assistance, said Mr Chawla. India has a shareholding of 1.91% in IMF, with a quota of $4,158.20 million in SDR. To enhance the voice of emerging markets and developing countries in IMF, the G-20 also urged accelerated review of IMF's quotas. The 20 powerful and emerging nations agreed to have a global benchmark on financial regulation. They also committed to raise the level of financial regulation to the global benchmark to be decided by G-20.
World leaders at the G-20 meeting, held earlier this month in London, decided that they would provide fresh funds to IMF, so that it can triple its $250 billion available for lending to needy countries. Japan and the EU have already committed $100 billion each while China has committed $40 billion, as the IMF seeks to inject cash into the world economy and help it tide over its sharpest decline in decades.
"We are willing to contribute to the pool of funds in proportion to our quota. Should IMF require, we can lend $10-11 billion, for which interest would be paid. A decision on this will be formally communicated to IMF at its spring meeting later this month," Mr Chawla said. India, however, has no plans to borrow from IMF at the moment, he added, quoting Prime Minister Manmohan Singh, who said in London that India has
no such plans.
IMF will also get another $250 billion in Special Drawing Rights (SDR), an overdraft facility for its 185 members. India has no requirement for assistance, said Mr Chawla. India has a shareholding of 1.91% in IMF, with a quota of $4,158.20 million in SDR. To enhance the voice of emerging markets and developing countries in IMF, the G-20 also urged accelerated review of IMF's quotas. The 20 powerful and emerging nations agreed to have a global benchmark on financial regulation. They also committed to raise the level of financial regulation to the global benchmark to be decided by G-20.
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