In some signs on progress and ease of jitters over the outlook for the increased firepower of the EFSF Russia is stepping up with a helping hand to secure the safety of its neighbor's economic health.
Russia said it is prepared to help Europe to cope with the debt crisis through the IMF by providing as much as $10 billion and also did not rule out the possibility of bilateral support to other nations. Arkady Dvorkovich, the Kremlin's top economic aide, told reports in Moscow today that it's really important to us that Europe remains stable adding that the effect of the instability in the region will push the Russian economy into a period of instability.
The comments come ahead of the G20 summit in Cannes this week on November 03 and 04, where Russian President Dmitry Medvedev will join other leaders and discuss the current developments in Europe especially after the presented plan. Dvorkovich said that President will also ask that other countries start reducing their budget deficits alongside the proposed support for Europe and especially that Russia enjoys a good position as the holder of the world's third largest international reserves.
The remarks also come in line with the announcement from the BRICS (Brazil, Russia, India, China and South Africa) the group of emerging economies about a month ago in which they stated the willingness to help support global financial stability through the IMF and other international organizations.
The comments are surely positive ahead of the G20 summit yet the fear is that they are very concentrated on the help through the IMF which might mean that Europe might face difficulty in raising capital for its operations in the leveraged EFSF as it hoped for and by reliance on emerging nations.