Press Trust of India , 20
Jun 2012 | 09:47 AM
The amount we
contribute is entirely liquid, in the sense that the International Monetary
Fund (IMF) assures contributors that it will be available whenever needed. It
will, therefore, continue to form part of our reserves," Prime Minister
Manmohan Singh said in a statement.
The officials
explained that the situation has not reached a point where the funds committed
by Singh at the G-20 Summit yesterday would have to be transferred to the IMF.
According to R
Gopalan, Secretary in the Department of Economic Affairs, "the country may
not be called upon to give the money if the world situation gets better."
The G-20
countries, he added, have responded to the need to enhance the resources of the
IMF to enable it to play its role in the current situation.
"India has
contributed $10 billion. BRICS and other countries have also contributed,
taking the total commitments, including what was earlier agreed in April, to
almost $460 billion," Singh added.
According to
Gopalan, "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 is a message to the
financial markets that a firepower is available to meet the contingencies and
to give confidence and calm the markets."
Pointing out that the
Summit has taken place at a time when the circumstances are very difficult, the
Prime Minister said, "my overall assessment of the meeting is that there
was general agreement that policy in all countries must shift to strengthening
growth... there was also general agreement that the most urgent problem we must
tackle is to reduce uncertainty about the Eurozone."
The Summit , he further said,
also reiterated the standstill on new protectionist measures and extended it
beyond the earlier commitment upto 2013 to 2014. "This is an important
statement of intent by the G-20 leaders to resist protectionist tendencies,
which typically increase in periods of high unemployment and low growth,"
he added.
The Los Cabos
Declaration, Singh said, also reflected India 's views that investment on
infrastructure in developing countries could play a major role in strengthening
development and in stimulating global recovery.
"The
Declaration indicates that Multilateral Development Banks should be strengthened
for this purpose. We would work with G-20 countries to transform their
commitment to specific action," Singh added.
The
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