India yet to decide on USD 11-billion lending to IMF

New Delhi, Apr 9 (PTI) If India takes part in USD 500-
billion resource raising programme of International Monetary
Fund, as decided at the G-20 summit in London last week, it
will cost the country up to USD 11 billion (Rs 55,000 crore).

"If the government decides to participate in the new
arrangements to borrow, then based on the quota, that (USD 11
billion) could be the amount which the country will have to
commit in principle to IMF," Economic Affairs Secretary Ashok
Chawla said here Thursday.

However, Chawla did not elaborate as to when the decision
on the issue would be taken.

Leaders of 20 advanced and developing countries decided
to treble the resources of IMF from USD 250 billion to USD 750
billion, so that the multilateral institution could help the
poor and developing economies, which have been hit by the
global credit crisis.

India has already said that it would not require any IMF
support in the wake of comfortable foreign exchange reserves
of about USD 250 billion.

However, New Delhi has not so far made any commitment
towards contributing to the fresh resources of IMF, as was
done by China, European Union and Japan.

On the issue of review of quota and increased
representation in the multilateral agency, India still has
time to decide on the strategy.

"The review of quotas or the rebalancing of quotas is not
immediately on the table in the sense that no decision has yet
been taken on that," said Chawla, who was part of the Indian
team at G-20 summit.

An official communique issued at the end of the G-20
summit had recognised the importance of reforming
international financial institutions to ensure they can assist
members effectively and that emerging, developing and poor
economies must have greater voice and representation.

"What we are looking for is going to be discussed and
finalised over a period of time, which is, according to the
communique, up to January 2011," the Finance Ministry official
said. PTI MG
SAK
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