Bloomberg News

Sweden Urges More Backing for IMF After Pledging $10 Billion

April 17, 2012

Sweden pledged $10 billion to the International Monetary Fund and urged other nations such as the U.K. to step up and help in efforts to shield the global economy against any deepening of Europe’s debt crisis.

Others should also declare how much they’re willing to contribute before meetings this week in Washington of the IMF, World Bank and the Group of 20 members, Finance Minister Anders Borg told reporters today in Stockholm.

“We’re prepared to contribute to the International Monetary Fund $10 billion; that’s significantly more than our quota,” he said. He urged “similar statements from other countries and that’s primarily from other big economies like Great Britain but also other European economies that can make pledges that contribute to so that we, together, get a raised capitalization.”

Japan, the world’s third-largest economy, today pledged $60 billion to the fund as it became the largest donor yet outside Europe to respond to Managing Director Christine Lagarde’s campaign to raise resources for the second time in three years.

Sweden may boost its contribution to $15 billion depending on how much other nations commit, Borg said. Sweden’s central bank Governor Stefan Ingves said in December that the country may contribute as much as 100 billion kronor ($15 billion) to boost the IMF rescue toolkit.

“We will have a discussion around how big undertakings others are prepared to make also during the months after the summits because that’s how thing normally turn out,” Borg said.

The IMF needs an extra $400 billion in reserves to create a global “firewall” against financial risk, Lagarde said in an interview with newspaper Le Monde published today.

To contact the reporter on this story: Johan Carlstrom in Stockholm at jcarlstrom@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net


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