Britain Refuses to Boost IMF Aid for Euro Crisis

[marmar]

from Der Spiegel:



EU finance ministers wanted to raise 200 billion euros to boost the International Monetary Fund's firepower in the euro crisis, but they only raised 150 billion on Monday, largely due to resistance from Britain. Germany, meanwhile, will have to rework its 2012 budget to help finance the new permanent euro rescue fund.

European Union leaders had decided at their Dec. 8-9 summit to boost the resources of the International Monetary Fund by €200 billion ($260 billion) to help it tackle the euro debt crisis. But in talks on Monday, EU finance ministers only managed to raise €150 billion because the United Kingdom refused, at least for the time being, to contribute its share of around €25 billion.

Following a conference call, the ministers said in a statement that the Czech Republic, Denmark, Poland and Sweden, which are in the EU but not in the euro zone, would also grant loans to the International Monetary Fund to help rescue the currency. But the EU said those countries must first win parliamentary approval.

"Euro area member states will provide €150 billion of additional resources through bilateral loans to the fund's general resources account," the EU statement said. "The EU would welcome G-20 members and other financially strong IMF members to support the efforts to safeguard global financial stability by contributing to the increase in IMF resources." .................(more)

The complete piece is at: http://www.spiegel.de/international/europe/0,1518,804814,00.html