Britain ready to boost contribution to IMF for troubled countries
Published 03/11/2011 | 18:50
BRITAIN is ready to consider boosting its contribution to the International Monetary Fund's lending facilities for countries in financial crisis, David Cameron has said.
However the Prime Minister insisted, as he arrived for the crunch summit of the Group of 20 leading economies in Cannes, that the UK will not support direct IMF investment in a eurozone bailout fund.
Mr Cameron has repeatedly made clear that the UK will not contribute directly or via the International Monetary Fund to a €1 trillion eurozone bailout fund being proposed to put an end to the two-year sovereign debt crisis.
But discussions at Cannes are also focusing on the possibility of increasing the funds available to the IMF to support individual countries at risk of default, potentially including Ireland, Portugal and even Italy.
At present, the UK provides 4.5pc of the IMF’s multi-billion lending capacity.
Mr Cameron said: "Let's be clear. When the world is in crisis, it's right that you consider boosting the IMF - an organisation founded by Britain, in which we're a leading player.
"No government ever lost money by lending money to the IMF, which supports countries right around the world. What we wouldn't support is the IMF investing directly in some euro bailout fund. That wouldn't be right and we won't back it.
"There is no risk to the British taxpayer of seeing the IMF play its proper role. That's what we've always supported."