India may not have to give eurozone $10bn
21 Jun 2012 12:29 AM GMT
India may not be called upon to inject $10 billion [Rs 55,000 crore] into the IMF bailout fund to help the debt-wracked eurozone tide over its financial crisis after it announced its contribution if the global economic situation gets better, an official said today.
R Gopalan, secretary in the department of economic Affairs, said that the $10 billion dollar contribution announced by Prime Minister Manmohan Singh at the G20 Summit is still considered part of the country's reserves and that the situation has not reached where a transfer of funds have been effected. ‘It [contribution] is considered part of our reserves. The country may not be called upon to give the money if the world situation gets better,’ he said.
‘India's contribution of $10 billion as part of the $75 billion pledged by the five-nation BRICS bloc to the IMF's additional firewall of $430 billion is a message to the financial markets that a firepower is available to meet the contingencies and to give confidence and calm the markets,’ the official said.
Meanwhile, the G20 countries agreed to give priority to investment in infrastructure in developing countries as a way to stimulate global growth which has been stunted due to the faltering world economy and the eurozone crisis.
‘We will intensify our efforts to create a more conducive environment for development, including supporting infrastructure investment,’ said a 14-page declaration. The declaration said that it recognised the impact of the continuing crisis on developing countries, particularly low income countries.
R Gopalan, secretary in the department of economic Affairs, said that the $10 billion dollar contribution announced by Prime Minister Manmohan Singh at the G20 Summit is still considered part of the country's reserves and that the situation has not reached where a transfer of funds have been effected. ‘It [contribution] is considered part of our reserves. The country may not be called upon to give the money if the world situation gets better,’ he said.
‘India's contribution of $10 billion as part of the $75 billion pledged by the five-nation BRICS bloc to the IMF's additional firewall of $430 billion is a message to the financial markets that a firepower is available to meet the contingencies and to give confidence and calm the markets,’ the official said.
Meanwhile, the G20 countries agreed to give priority to investment in infrastructure in developing countries as a way to stimulate global growth which has been stunted due to the faltering world economy and the eurozone crisis.
‘We will intensify our efforts to create a more conducive environment for development, including supporting infrastructure investment,’ said a 14-page declaration. The declaration said that it recognised the impact of the continuing crisis on developing countries, particularly low income countries.
Next Story
