Britain on the hook as IMF seeks $600bn in extra funds

Tim Wallace
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THE IMF went cap in hand to its members yesterday to ask for an extra $600bn (£388.8bn) to rescue governments that it expects to struggle in the euro-led economic slowdown.

When the IMF raised $500bn in 2009, the UK gave $28.8bn. Though no detailed plans have yet been finalised this time around, the coalition is under pressure from disgruntled MPs to limit contributions that might be used to bail out the Eurozone by the back door. Late last year Britain rejected plans for a Eurozone bailout via the IMF.

The US has ruled out participation in the fundraising round, but the Eurozone countries have pledged to giving around £200bn.

Markets reacted well to the new IMF plan, helping the FTSE 100 break the 5,700 mark for the first time in three months.