Tuesday, 19 June 2012

India pledges 10 billion $ for eurozone

After the BRICS(Brazil, Russia, India, China and South Africa) meeting in Los Cabos,Mexico on June 18,2012. Brazil, Russia and India each pledged $10 billion, while South Africa offered $2 billion. G20 host Mexico also contributed $10 billion.
(L-R) Brazil's President Dilma Rousseff, Russia's President Vladimir Putin, India's Prime Minister Manmohan Singh, China's President Hu Jintao and South African President Jacob Zuma pose for a picture after a BRICS leaders' meeting in Los Cabos June 18, 2012.
"I am happy to announce India has decided to contribute $10 billion to IMF's additional firewall of $430 billion," said the Indian Prime minister Mr. Manmohan Singh, The prime minister began by congratulating the new government in Greece that is about to take office, as it has given hope that the debt-laden country will stay in the Eurozone and take up critical reforms. "We wish them well and are encouraged by the early statements of intent." said the Indian PM.
He(Indian P.M.), nevertheless, said the crisis in Eurozone remained worrying, as it was pulling down even emerging economies such as India and China, which were earlier on a high growth path.
The announcement brought an end to the mystery of how much the powerful BRICS countries -- Brazil, Russia, India, China and South Africa -- would provide.

The five BRICS nations represent 43 percent of the world's population and about 18 percent of global economic output. They have about $4 trillion in combined reserves, with the lion's share held by export powerhouse China.

Emerging economies have long demanded more say at institutions like the IMF to reflect their growing clout. Their frustrations have grown with the likely delay in implementing the 2010 deal that would boost their voting power and make China the third-largest voting member of the IMF.

The big emerging economies are also seeking more influence in the world economy by planning wider use of currencies other than the dollar and euro. The BRICS statement on Monday said the five leaders had "discussed swap arrangements among national currencies as well as reserve pooling."
BRICS finance ministers and central bank governors were instructed to study the swaps and pooling arrangements and relevant internal legal issues and report to next year's BRICS leaders' summit in South Africa, the statement said.

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