The world’s emerging economic powers say they’ll inject cash into the Eurozone rescue plan to stem debt crisis contagion.
Russian presidential aide Arkadiy Dvorkovich says the country could contribute through the International Monetary Fund.
A recent move by emerging economies to bolster the capital of the IMF and redistribute quotas was put down by Western states at the last G20. But Dvorkovich says, with the threat of a new wave of financial turmoil, the proposal should be taken seriously.
“Compromises should be sought concerning the solution of current problems, and previous decisions should be carried out. All G20 countries should pursue a coordinated policy that would be able to stabilize the situation in the world economy,” he said.
The proposal involves cutting budget deficits and debt within four years. The presidential aide insists the current economic conditions mean every country should express its attitude towards the project.
“We are not yet sure that all countries are in a position to cope with such plans. And at every meeting we remind our partners, we insist that they publish their intentions about this,” he said.
Dvorkovich has also hinted that Russia could buy Spanish bonds. However, he pointed out that a clear strategy in the EU is a precondition for any help Moscow may deliver.
“We are waiting for the European countries to announce a specific and comprehensible strategy to come out of the recession. If they need Russia’s aid or the help of the BRICS countries, we are ready to offer it,” Dvorkovich announced to journalists at the Millennium Development Goals forum.
After Europe’s wide-ranging deal to fight the sovereign debt crisis, China may consider investing some 100 billion euro in the rescue fund – as Li Daokui, academic member of China’s central bank monetary policy committee, told the Financial Times, noting that the risks should be secured.
US president Barack Obama says Europe’s new debt plan lays a “critical foundation” for a comprehensive solution to the continent’s financial crisis, and “the US should play a constructive role where appropriate.”