World Economy

In the fight against the spread of European debt crisis, have the 20 leading industrialized and emerging economies (G20) is now taken further steps against it. The International Monetary Fund (IMF) will receive an increase of 430 billion dollars. The funds are available, however, all IMF member countries are available.

The 20 leading industrialized and emerging economies (G20) have agreed on an increase in the cash crisis, the International Monetary Fund (IMF) by more than 430 billion dollars. This is particularly a global spread of the European debt crisis will be contained. Basically, the funds were, however, all Member States of the funds available, the G20 finance ministers and central bank chiefs told on Friday at the IMF spring meeting in Washington. The capacity of the emergency loan fund is more than doubled.

Germany in particular had prior to the increase in European aid crisis urged the international partners to honor their commitments. Europe has done with the expansion of its two parachutes at about a trillion dollars, which was agreed upon, said Finance Minister Wolfgang Schaeuble. Now, would the IMF partners fulfill their part. If you think this was only in the European interest, mistaken, he also stressed in the face of criticism from emerging countries, but also from Canada. "The increase in resources must now be brought to a conclusion", a shift made no sense. Spain is in the financial markets come under renewed pressure - so time is running out.

Emerging countries should have more influence

A significant number of countries have made a firm commitment to raise more than 430 billion dollars for the IMF, told the G20 countries. In essence, the sum to be allocated to the Fund through bilateral loans. If the agent is assigned, according to fixed criteria, namely, risk reduction, conditionality and appropriate burden sharing with other government lenders.

G20 and the IMF's steering committee is also known IMFC on the requirement, which in 2010 adopted the IMF quota reform to the annual meeting of IMF and World Bank in October of this year to implement. Furthermore, in the view you have to check the quota formula to January 2013 and a further review of the distribution of quotas among the IMF members until January 2014.

This was received with criticism, particularly in the districts was emerging became loud. So wanted his post as Brazil is not for nothing on the table. The emerging markets pounded out in turn to break the traditional dominance of the Europeans in the Fund. Brazil recalled with emphasis on the adaptation of already pledged participation rates for emerging markets. "Some states are not particularly enthusiastic about the IMF reforms," ​​Finance Minister Guido Mantega defendant with a view of the Europeans. "They find it much easier to ask for money than quota reform to go ahead."

Following the G20 meeting, said Mantega, the Brics countries, which include not only Brazil, Russia, India, China and South Africa have decided unanimously to make the IMF more money to spend.

Resistance to the traditional dominance of the Europeans at the IMF has recently swelled strong because they have the largest voting bloc, and also provide with Christine Lagarde, the boss. The reform must be even by the U.S. Congress ratified and is due to the U.S. election campaign unlikely in the near future.

A delay in building the defensive crisis had threatened to be costly but, like the resurgence of the debt crisis in the financial markets showed. Investors doubt on Spain's long-term solvency and therefore drove the yield on ten-year bonds in the country back on a critical level of six percent, the term shall not be considered acceptable.