By Dipankar De Sarkar, IANS,
London : Finance Minister Pranab Mukherjee began meeting with his counteparts from Brazil, Russia and China ahead of a G20 meeting here Friday, as two key European leaders said India should help replenish a massive funding gap in the International Monetary Fund (IMF).
Mukherjee, participating in his first Group of 20 meeting as finance minister, met Guido Mantega of Brazil, Xie Xuren of China and Alexey Kudrin of Russia to firm up the position of the BRIC group ahead of the full G20 meeting Saturday.
The BRIC ministers, representing countries that are on an economic growth trajectory, are expected to renew calls for a greater say in the running of the IMF, including a bigger share of voting rights.
The BRIC meeting also follows a call by the finance ministers of France and Germany for India and other emerging economy-members of the G20 to increase their contributions to the IMF.
“Other countries like India, Saudi Arabia and other emerging markets can be expected to make pledges and we should continue to call on them to join the international effort,” Christine Lagarde of France and Peer Steinbruck of Germany wrote in a joint letter.
“However, we believe that Europe should not wait for these pledges and should announce rapidly the amount of its own contribution,” they added.
G20 leaders, including Prime Minister Manmohan Singh, agreed at their London summit in April to add $500 billion to the IMF, particularly to help poor countries grapple with the credit crunch – part of a massive $1.1 trillion rescue package announced by British premier Gordon Brown at the summit.
The EU had then offered to provide about $100 billion, but France and Germany earlier this week said that sum should be raised to $175 billion.
Britain has urged Europe to set an example and do more to meet the target of $500 billion pledged to the IMF. Britain has agreed to lend up to $15 billion to poorer economies and is willing to provide up to $11 billion more as part of an EU package.
The G20 comprises Argentina, Australia, Brazil, Britain, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the US and the European Union.