NEW DELHI, Sept 6:
The Government has agreed to contribute USD 10 billion to the International Monetary Fund (IMF) and the amount will be released in a phased manner, Parliament was informed today.
“In line with commitment made by other G20 countries, India has announced a contribution of USD 10 billion to the IMF towards enhancement of IMF resources for crisis prevention and resolution,” Minister of State for Finance Namo Narain Meena said in a written reply to the Rajya Sabha.
The contribution to the IMF will made be though Note Purchase Agreement (NPA), which is under discussions and modalities are yet to be finalised, he said.
“Under the NPA, the support will not be in the form of upfront payments. Against the notes issued by the IMF, the funds would be released in a phased manner as and when IMF calls upon India to make the resources available, which, in turn, depends upon the financing need of IMF,” Meena said.
He said the commitment to IMF has been announced after considering various factors, including the country’s economic situation.
Apart from India, China has also announced USD 43 billion, Russia and Brazil (USD 10 billion each) and South Africa (USD 2 billion) contribution to the Washington-based funding agency.
India’s contribution to IMF would remain as part of India’s foreign exchange reserves, Meena said.
In June, India had announced a USD 10 billion contribution to the IMF’s additional USD 430 billion financial firewall to help the debt-wracked 17-nation euro zone overcome its crisis.
The IMF fund will serve to help Governments that are struggling to cope with debt repayments. (PTI)
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