European states could add more to the International Monetary Fund's crisis-fighting war chest than the 75 billion euros ($105.5 billion) already pledged, according to a draft to be presented to EU leaders next week.
"In principle, member states stand ready to take their share of further financing needs, if they arise over the medium term through the New Arrangements to Borrow, in the context of a fair burden-sharing at the global level," said the draft, which was obtained by Reuters on Sunday and which could still be amended.
The New Arrangements to Borrow (NAB) is a set of credit arrangements set up in the 1990s between the IMF and financially strong states and institutions to deal with financial crises. In April, the Group of Twenty (G20) countries together committed to triple IMF resources to a total of $750 billion to allow the fund to respond to crises in hard-hit emerging market and developing countries. Leaders of the 27-nation EU meet next Thursday and Friday for a summit aimed at agreeing financial regulation reforms.
Comments
Comments are closed.