RTTNews - UK Chancellor of Exchequer Alistair Darling said his country is ready to provide extra money to the International Monetary Fund to help low-income countries in addressing the economic crisis. He also urged other European governments to do so in order to raise the IMF resources more than they have pledged earlier.
In his article published on the Guardian newspaper's website on Sunday, Darling wrote the 27 European Union nations should increase the funding to IMF to $175 billion from $100 billion, which they have already committed.
In April's London G-20 summit, world leaders decided to treble IMF's resources to $750 billion to help low-income countries to contain the crisis. Europe has agreed to provide $100 billion.
On August 28, the IMF announced that it would be injecting $283 billion in Special Drawing Rights allocations into members' reserves, increasing the outstanding stock of SDRs to $316 billion. A $250 billion allocation was sought at the London G-20 summit in April, as part of a $1.1 trillion plan, agreed upon to remedy the global financial and economic crisis by restoring credit, growth and jobs in the world economy.
Darling wants Europe to set an example before the rest of the world and do more to meet the target of sustainable growth. He said the UK is ready to provide an extra $11 billion, which will take the country's total contribution to the IMF to $26 billion.
On the global front, Britain will continue to lead international action both in response to the financial crisis and to help secure the recovery, Darling wrote.
The Chancellor is set to make an official announcement on extra fund approval for IMF on Tuesday.
The Chancellor noted that in the UK, the government had already taken radical measures to get through the recession. The government is committed to do more. But neither the economy nor the banking system can flourish without international co-operation.
While I remain cautious that risks to the global economy remain, I am confident that the UK will return to growth round the turn of the year as a result of the measures we have taken, he wrote.
Last week, data released by the Office for National Statistics showed that the British economy contracted 0.7% in the second quarter compared to the first quarter. That was the fifth quarterly fall in gross domestic product or GDP.
Darling said the G20 finance ministers' meeting to be held at London on Friday will step up their efforts to secure the economic recovery and repair the world's failed financial system.
The Chancellor forecasts global economic output to increase by 4% by the end of 2010 boosted by the extra $5 trillion spent by the G20 countries. That is why international co-operation is imperative, he said.
I am determined the recovery will be sustainable and lasting, that no one should be consigned to the scrap-heap, like so many were in the 1980s and 1990s, he wrote.
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