India promises $10b bond purchase: IMF
Sunday, 6 September 2009
WASHINGTON, Sept 5 (AFP): The International Monetary Fund (IMF) Saturday welcomed India's commitment to buy US$10 billion worth of IMF bonds.
"I welcome the announcement by India of its intention to support the Fund's lending capacity through the purchase of up to $10 billion worth of IMF notes" IMF director Dominique Strauss-Kahn said in a statement.
Indian Finance Minister Pranab Mukherjee announced the purchase at a G20 finance ministers meeting in London.
The Indian pledge comes after China said it would snap up $50 billion worth of the asset, created in July this year as a means of propping up the Washington-based institution's finances.
"This investment will help underpin the international financial system by ensuring the Fund has adequate resources to meet the financing needs of its membership," said Strauss-Kahn.
China's was the first note purchase agreement in the history of the 186-nation body.
Brazil and Russia have also expressed an interest in the new asset, which has been embraced by top emerging markets as they seek to increase their punch on the world-stage.
In a statement, the Indian government said it expected more IMF votes and eased access to financing -- in IMF jargon an "increased quota" -- as a quid-pro-quo for the purchase.
"We fully expect that the next general quota review, which is now agreed to be concluded by January 2011, will result in the long overdue substantial re-balancing of quota and voting power in favour of emerging market economies and developing countries," the statement said.
"I welcome the announcement by India of its intention to support the Fund's lending capacity through the purchase of up to $10 billion worth of IMF notes" IMF director Dominique Strauss-Kahn said in a statement.
Indian Finance Minister Pranab Mukherjee announced the purchase at a G20 finance ministers meeting in London.
The Indian pledge comes after China said it would snap up $50 billion worth of the asset, created in July this year as a means of propping up the Washington-based institution's finances.
"This investment will help underpin the international financial system by ensuring the Fund has adequate resources to meet the financing needs of its membership," said Strauss-Kahn.
China's was the first note purchase agreement in the history of the 186-nation body.
Brazil and Russia have also expressed an interest in the new asset, which has been embraced by top emerging markets as they seek to increase their punch on the world-stage.
In a statement, the Indian government said it expected more IMF votes and eased access to financing -- in IMF jargon an "increased quota" -- as a quid-pro-quo for the purchase.
"We fully expect that the next general quota review, which is now agreed to be concluded by January 2011, will result in the long overdue substantial re-balancing of quota and voting power in favour of emerging market economies and developing countries," the statement said.