G20 to double the IMF reserves with its additional financial aid of $ 430 bn

The G-20 countries decided to aid the reserves of the International Monetary Fund (IMF) with another$430 bn for coping with the economic crises. This became clear after the meeting of finance ministers of the Top 20 developed economies in Washington during the spring session of the World Bank and IMF. "These resources will be available to all IMF member states and will not be reserved for any particular region," stated the G20. This amount includes $ 200 bn granted by the Euro area member states and nearly $70 bn from the European countries outside it. Japan agreed to provide $ 60 bn, South Korea will grant $ 15 bn, while Saudi Arabia will extend further $ 15 bn, whereas Australia will participate with $ 7 bn. Th UK was among the opponents of the idea of ​​increasing the IMF's financial strength, but eventually the Finance Minister George Osborne announced that London will grant to the institution overall $ 15 bn. Korea also pledged to provide $ 15 bn, while Australia will grant $ 7 bn and Singapore - $ 4 bn.

"IMF lending capacity has doubled, which is the right tool for combating the crisis. Even developing countries like Russia, India, China and Brazil, have made financial commitments. The results show the International Community's determination to beat the crisis, " commented the IMF Managing Director, Christine Lagarde on Monday, quoted by Reuters. "Given the increase in financial resources, which we agreed, the IMF's financial capacity will exceed $1 trln," explained she. IMF also did not spare its criticisms to the Old Continent. European governments were warned that they were destined to lead the main battle for overcoming the debt crisis. Describing Europe as "the epicenter" of the risks to the global economy, Lagarde stated that the Fund serves as an emergency safeguard mechanism, while Europe should defend itself alone as well as strength its economic growth and reduce its debt amount. Besides, IMF also called for the introduction of decisive structural reforms to the EU for improving the economic growth.

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