Brics nations to increase contribution to IMF resources

Indian rupee notes being exchanged The IMF has been seeking the help of emerging economies to boost its resources

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The Brics economies have said they will increase their contribution to the International Monetary Fund (IMF).

Brics refers to Brazil, Russia, India, China and South Africa, five of the fastest growing emerging economies in the world.

The move comes as the IMF has been looking to boost its finances to help prevent any future financial crisis.

The Brics nations have also asked for a greater say at the fund.

"These new contributions are being made in anticipation that all the reforms agreed upon in 2010 will be fully implemented in a timely manner, including a comprehensive reform of voting power and reform of quota shares," the Brics economies said in a statement on the sidelines of the G20 summit in Mexico.

The nations added that they expect their contributions would be used only after the existing resources had been "substantially utilised".

'Deeply worrying'

Start Quote

There is concern that the firewall available may not be adequate to deal with contagion”

End Quote Manmohan Singh Indian Prime Minister

The IMF has been called upon to lend money to countries such as Greece that have been affected by the continuing sovereign debt crisis in the eurozone.

There are concerns that the fund may need to step in again if the debt crisis worsens and spreads to the region's bigger economies, such as Spain and Italy.

To prepare for this eventuality, it has been seeking to shore up its reserves so that it can provide help when needed.

China, the biggest Brics economy and the world's second-largest, confirmed it will contribute $43bn (27.4bn).

Two other Brics members, India and Russia, said they would enhance their contribution by $10bn each.

"There is concern that the firewall available may not be adequate to deal with contagion," said India's Prime Minister, Manmohan Singh.

Mr Singh added that a faltering global recovery and slowing growth in emerging economies had made things more complicated.

"The global economic situation is deeply worrying."

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