Posts Tagged ‘European’
India will help fund the bailouts in Europe, assuming a role reversal, since 20 years ago was India who need help from the International Monetary Fund (IMF) to avert a crisis in its balance of payments.
The government on Tuesday requested congressional approval to provide more than Rs 90,030 crore (over 2,000 million euros) to the bottom of the multilateral agency known as NAB (New Arrangements to Borrow), whose corpus amounted to more than 500,000 billion in March, when the debt crisis in Europe showed no signs of abating.
Already there are suggestions that more funds would be required by the European Union, as well as multilateral agencies.
In the last two years, amid rising tensions in the global economy, the IMF has been forced into action on several occasions, and has funded bailouts of European countries to crises due to high debt levels.
The 10-fold increase in NAB corpus was the result of a new global financial order created by the G20 group of world’s most powerful economies in the post-financial crisis. Membership in the elite club of taxpayers NAB also expanded to include 13 economies, including India.
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