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Barroso supports doubling of IMF resources

  European Commission President Jose Manuel Barroso on Wednesday threw his weight behind a call for doubling of the International Monetary Fund’s resources to better help troubled countries.

Barroso made the remarks one day before European Union leaders meet in Brussels on the 27-nation bloc’s response to the economic crisis and their joint position at a G20 summit in London early next month.

He told a press conference in Brussels that EU leaders will discuss more funding for the IMF and decide on how much Europe should contribute.

EU finance ministers reached a broad agreement last week to double the IMF’s funding capacity from the current $250 billion to 500 billion, but they did not specify EU’s contribution.

Ahead of the G20 summit, the United States is calling for trebling of the IMF’s resources to help countries facing financial and economic problems.

In preparation for the summit, finance ministers and central bankers from the G20 agreed last weekend to boost the IMF’s funding capacity, but gave no figures. So far, Japan has pledged to add $100 billion to IMF’s funds.

The EU is eager to see a boost of the IMF’s resources as its Central and Eastern European members are in urgent need of funding from the Washington-based institution. Hungary and Latvia have already received IMF loans and Romania is now in the waiting line. (Xinhua)