IMF right forum to help Eurozone economies: India

November 3rd, 2011 - 11:57 pm ICT by IANS  

Manmohan Singh Cannes, Nov 3 (IANS) Even as the G20 is closely monitoring how the members of the Eurozone propose to resolve the crisis, India firmly believes the International Monetary Fund (IMF) is the right forum to extend the funds and monitor the progress.

“We strongly support the IMF playing its part in restoring stability in Europe,” Prime Minister Manmohan Singh to the G20 Summit Thursday, amid various proposals that were being examined, particularly for Greece.

“At the same time, the IMF must also keep in mind the liquidity requirements of developing countries, who are not at the centre of the crisis, but may nevertheless be adversely affected as innocent bystanders,” the prime minister added.

Briefing journalists after the first leg of summit meetings, Planning Commission Deputy Chairman Montek Singh Ahluwalia, also Manmohan Singh’s main interlocutor, said India could help in resolving the Eurozone crisis but no formal request had yet been made.

Ahluwalia said India does welcome the European Financial Stability Facility, but it was still not clear how next they proposed to raise resources and from whom. In that, India feels IMF will be the right forum.

Ahluwalia said India, certainly, will not oppose any country from making a bilateral commitment towards resolving the Eurozone crisis. But this must also be looked in the context of just $250 billion available with IMF, including money needed by poor nations.

“Global financial systems do not work on accidental acts of generosity.”

(Arvind Padmanabhan can be reached at arvind.p@ians.in)

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