China pledges $43 billion to IMF

China will pitch in $43 billion to the latest round of the $430 billion resources increase to the International Monetary Fund (IMF) at the G20 summit, People’s Daily Online learned from the People’s Bank of China (PBC) yesterday.

“For the purpose of insuring the IMF’s ample resources and helping the international community to tackle the current financial crisis, China pledges to contribute $43 billion to the resources increase to the IMF,” said the PBC, the central bank of China.

The announcement came against the backdrop of increased global economic uncertainty and the intensified turmoil in the global financial markets, according to the PBC.

G20 finance chiefs agreed in April to have the group of advanced and emerging economies cooperate on increasing the financial firepower of IMF, by over $430 billion, to meet future financing demand from members affected by the eurozone crisis.

As of right now, the IMF has over-realized its $430 billion goal. And the increased resources would be used to help all members, not earmarked for any special region, according to the central bank.

The G20 leaders confirmed a 6-percent shift of quota shares to emerging market and developing countries (EMDCs) in the IMF during the G20 summit in 2010, and were committed to achieving the quota shifts by the annual meetings in 2012.

The PBC urged the IMF to accelerate the pace of the reform.

“As an international financial institution based on quota, the IMF should finish the 2010 quota reform on time,” said the Chinese central bank.

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“Meanwhile, the IMF should continue to improve its structure and further increase the voice of the emerging economies in this global financial institution.”

Author: Li Zhenyu
Source: People’s Daily Online

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