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India on Tuesday announced a $10 billion contribution to the IMF’s additional $430 billion financial fund to help the debt-wracked 17-nation eurozone so that the faltering world economy is protected against spread of any financial contagion.
The announcement was made by Prime Minister Manmohan Singh in his address at the plenary session of the seventh summit of the Group of 20 developed and developing countries in the Mexican resort town of Los Cabos against the backdrop of growing calls to nations to increase contributions to the International Monetary Fund for the bailout fund.
India’s contribution along with pledges by other member countries of the five-nation BRICS bloc has helped increase IMF’s resources and give a boost to the $430 billion fund being used as a firewall to support struggling eurozone economies.
“The International Monetary Fund has a critical supportive role to play in stabilizing the eurozone. All members must help the Fund to play this role, I am happy to announce that India has decided to contribute $10 billion to the IMF’s additional firewall of $430 billion,” Singh told world leaders at the seventh summit of the grouping, which accounts for 80 percent the world’s GDP.
India has previously pledged to make contributions to the bailout fund but did not disclose the exact amount of its contribution to the fund.