Saturday, April 21, 2012

Why George Osborne criticised over £10bn IMF loan

World Top Stories News - Why George Osborne criticised over £10bn IMF loan : Chancellor George Osborne is facing anger from Tory backbenchers and Labour after announcing Britain is to commit another £10 billion to the International Monetary Fund (IMF).

Critics have accused Osborne of putting taxpayer's money on the hook for further bailouts of the struggling eurozone. He has been also accused of dodging a potentially embarrassing parliamentary vote on the extra contribution.

The Chancellor insisted the increased funding was vital to protect jobs and growth in this country.

"The UK sees itself as part of the solution to the challenges facing the global economy, not part of problem. We are helping to solve the global debt problem rather than adding to it.

"Jobs and growth in Britain depend on stable world economy. That needs a strong IMF.

"And because we have taken strong action to rescue our own economy, we can be one of many countries that can support the IMF, instead of being bailed out by the IMF."

The IMF was set up for countries to contribute money to a pool through a quota system from which other countries with payment imbalances can borrow funds on a temporary basis.

Alongside the UK's increase, Japan is to contribute an extra $60bn, South Korea $15bn, Switzerland $10bn and Australia $7bn.

However, the US and Canada have refused to add any more to the pot.

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