The leaders of the BRICS group of the largest emerging economies – Brazil, Russia, India, China and South Africa – are in favour of adding to the IMF’s capital base even without changing the voting structure, a move the US would block.
The development came alongside meetings of the Group of 20 finance deputies in Paris yesterday, in preparation for finance minister meetings today and tomorrow.
“We have said this before and have conveyed this again, that if emerging economies and the BRICS are called upon to contribute, we can do it via the International Monetary Fund,” a source familiar with the talks said. “India is open to it, China and Brazil are also okay with the idea as well.”
The move highlights the growing financial clout of the BRICS markets, which have continued to grow as European economies have stagnated.
Emerging markets are now keen to ensure the IMF is strong enough to step in with additional credit for Eurozone states such as Italy and Spain, to prevent them being caught up in the sovereign debt crisis.