No intention to borrow; we can contribute to IMF: PM

Britain's Prime Minister Gordon Brown greets Indian Prime Minister Manmohan Singh upon his arrival

LONDON: Prime Minister Manmohan Singh told the global community that India is willing to increase its contribution to the International Monetary Fund (IMF) but does not intend to borrow any money from the multilateral lending agency.

"We do not visualize any need in the near future to go to the IMF ... We can consider contribution to (the) IMF in proportion to our quota," he told reporters after the meeting of the G-20 leaders, who pledged to treble the resources of the IMF.

"As far as India is concerned ... The question arises that we should contribute (to the IMF)," Singh said when asked whether India, like Mexico, is planning to withdraw funds from the new facility approved at the G-20 Summit.

India, he added, has foreign exchange reserves of about USD 250 billion.
Expressing satisfaction at the inclusion of the country in the two key international committees, Singh said, "India has been recognized as a major economic player. It's a great achievement." India has been made a member of the Financial Stability Forum (FSF) and the Basle Committee on Banking Supervision, the two key standard setting bodies.

Expressing satisfaction at the decision of the G-20 to assign a bigger role to the IMF, the Prime Minister said, "I am happy to say that the G-20 have agreed to expand the resources of the IMF and the ADB (Asian Development Bank) and to also bring forward the quota review in the IMF." Describing the resolve of the global leaders to expand Special Drawing Rights (SDRs) as a positive decision, he said, "Together they involve a massive provision of USD 1.1 trillion for emerging market economies." SDRs are international assets created by the IMF in 1969 to supplement the reserves of member countries and its value is based on a basket of international currencies.

Singh said, "We have been in favor of expanding IMF assistance. It will restore confidence about emerging markets." The communique issued at the conclusion of the G-20 Summit also recognized the need for providing greater voice and representation to the emerging and developing countries to reflect changes in the world economy.

"We commit to implementing the package of (the) IMF quota and voice reforms agreed in April 2008 and call on the IMF to complete the next review of quotas by January 2011," it said.

Besides, the world leaders also agreed to consider greater involvement of the Fund's Governors in providing strategic direction to the IMF and increasing its accountability.