India need not transfer $10 bn into IMF right away

  • India may not be required to infuse $10 billion (Rs 55,000 crore) it promised at the G20 to the International Monetary Fund (IMF) for bailing out debt-trapped Euro zone if the global economic situation gets better
  • The amount to be transferred will be completely liquid and will remain part of our reserves as the IMF guarantees contributors that it will be obtainable if the need arises
  • As per the officials the circumstances have not arrived a point where the amount promised by India would have to be injected into the IMF
  • The G20 countries reacted to the need to augment the resources of the IMF to facilitate it to play its part in the current situation.
  • Out of $75 billion pledged by the BRICS group, India committed $10 billion
  • Total commitments that have been made so far amount to almost $460 billion

As per PM Manmohan Singh :

  • There was consensus among all countries to shift policies to strengthen growth and reduce uncertainty over Euro zone
  • The summit restated to resist protectionist measures and extended it to 2014
  • Los Cabos Declaration reflected India’s views that investment on infrastructure in developing countries could play a major role in strengthening development and in invigorating global recovery. For this to happen Multilateral Development Banks should be strengthened
  • Significant Issues including progress in regulatory reform, food security, agricultural productivity, anti-corruption measures and green growth were also talked over

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