EU calls for an increase of IMF resources after strengthening

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Finance ministers of the European Union today sent a message in favor of increasing the resources of the International Monetary Fund (IMF) so you can support the euro area, and emphasized that Europe has already done its job.

Finance Minister of France, François Baroin, appealed to the increase in IMF resources, which could be decided in the spring meeting of the international financial institution in mid-April, noting that “Europe has done its job.”

Baroin said the idea is to have a double firewall: a European and an international response coordinated by the IMF.

The French minister stressed that the IMF managing director, Christine Lagarde, and has welcomed the strengthening of the European rescue fund after the Eurogroup acordase yesterday to raise its lending capacity of 500,000 million to 700,000 million.

“We are going in the right direction,” he added.

The Danish Minister of Finance, Margrethe Vestager, meanwhile, said that “it is time to increase IMF resources and reach a global agreement” and said that such an increase is “in the interests of all countries.”

Vestager recalled that the euro countries have already committed to increase its contribution to the IMF at 150,000 million euros, and said other partners who do not share the single currency, such as Denmark, have also pledged to make an effort.

“What we want is an agreement in Washington in April,” he said.

The Minister said that the Danish financial market tensions have eased, but warned that there is no room for complacency and that reforms must continue to strengthen credibility.

From the European Central Bank (ECB), his vice president Vitor Constancio, said that the new European rescue fund is “absolutely credible” and that its endowment is maintained within the expectations that had been raised beforehand.

He also recalled that since the fund was created in May 2010 with a ceiling of 440,000 million euros, its roof has been increased to 800,000 million, this estimate includes 100,000 million already committed for bailouts of Greece, Ireland and Portugal.

Constancio also agreed that the IMF must have more resources if you want to continue to perform their functions in the future and also stated that in his opinion, the seriousness of the situation in Europe has been exaggerated.

Tags: Europe, Finance, IMF

Category: Business News