The amount the IMF can raise, primarily to help to create a sovereign firewall for Europe, stands at $320 billion, although several nations have said they will help push the sum close to the $400 billion goal.
A number of media report that the most likely source of new money is the BRICS. And, they are not budging. Each expects to have more of a say in the IMF’s policy. The fact that a Frenchwomen, Christine LaGarde, was picked as the new head of the fund has not helped. The complaint of the BRICS, however, goes well beyond that. The fair question most have asked is why they should put money into a rescue of recession-plagued Europe when they economies have become a great part of the engine that drives global growth.
China news outlet Xinhua reports that China’s Foreign Ministry spokesman Liu Weimin said “We are willing to discuss various funding plans for the IMF with IMF members, in a frank and positive manner.”. Translated, that means, the IMF cannot spend China’s money if China is marginalized as part of the process.