India to transfer IMF $10 bn only when neededhttps://indianexpress.com/article/news-archive/web/india-to-transfer-imf-10-bn-only-when-needed/

India to transfer IMF $10 bn only when needed

The government clarified its $10 billion contribution to help European countries would only be called in by the International Monetary Fund if and when required

The government on Wednesday clarified its $10 billion contribution to help European countries would only be called in by the International Monetary Fund if and when required.

“The amount we contribute is entirely liquid,in the sense that the Fund assures contributors that it will be available whenever needed. It will,therefore,continue to form part of our reserves,” Prime Minister Manmohan Singh said at the conclusion of the G20 Summit in Los Cabos on Tuesday.

Finance ministry officials were quick to explain that the funds would be transferred to the IMF only if the multilateral body exhausts its current resources. Economic affairs secretary R Gopalan said,“India’s contribution of $10 billion as part of the $75 billion pledged by the five-nation BRICS bloc to the IMF’s additional firewall is a message to the financial markets that a firepower is available to meet the contingencies and to give confidence and calm the markets.”

The announcement had raised questions as the government has recently introduced austerity measures.

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