India willing to contribute $10 bn to IMF: Ahluwalia | business | Hindustan Times
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India willing to contribute $10 bn to IMF: Ahluwalia

business Updated: Apr 27, 2009 09:51 IST
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Stating that it is ready to contribute about $10 billion (around Rs 50,000 crore) to the International Monetary Fund, India has proposed the world body should issue security bonds against the amount as New Delhi is not in favour of making direct contribution.

Planning Commission Deputy Chairman Montek Singh Ahluwalia, while talking to news agencies on the sidelines of the G-20 ministerial level meeting in Washington, said that the negotiations in this regard were still being carried out and nothing had been finalised yet.

"But our prime minister had said in April, and this has been our position for some time, we will be willing to contribute in proportion of the quota. Our view is that the resources being given to the IMF should be viewed as an interim measure, through the new arrangements to borrow (NAB)," Ahluwalia said.

India's existing quota share is about two per cent. "So if for example the total NAB is $500 billion, which is what was agreed in the leaders' summit then India's share would be $ 10 billion," he said.

India's concern, he said, is that this contribution should be made through the purchase of IMF bonds by the Reserve bank of India and not from the government because then it becomes part of the fiscal deficit.