Australia stands ready to offer financial support for IMF: treasurer

Australia stands ready to offer financial support for IMF: treasurer

Australian federal Treasurer on Sunday reaffirmed Australia's financial support to the International Monetary Fund (IMF) to stop the spread of the debt crisis.

Prime Minister Julia Gillard earlier said the Group of 20 nations, including Australia and China, are committed to ensuring IMF is properly resourced amid the Greek debt crisis, and added that Australia would contribute more money to the fund if it is required.

While Opposition frontbencher Eric Abetz warned the move will increase Australia's exposure to the debt crisis and any loan defaults, Swan said determined, consistent and continuing action is required to deal with the debt crisis and restore growth.

He said any money that Australia provided would be a loan that would be repaid in full with interest.

"That means it doesn't affect the budget bottom line," he said in a economic note on Sunday.

Federal Finance Minister Penny Wong, who stands firm behind the government's decision, said Gillard's pledge is about safeguarding Australian jobs.

"We're not funding Greece. What the Prime Minister has said is we stand ready, as do the G20, and that was something G20 leaders agreed - to increase the resources to the IMF, that the IMF could call on," she told ABC News on Sunday.

"What that does is bolster market confidence. Market confidence is good for the global economy, that's good for Australian jobs."

Last week the European Union gave Greece a financial lifeline, agreeing on a 130 billion euro bailout plan designed to keep the nation afloat.

Senator Wong said Greece had "stepped back from the brink" of defaulting, at least for now.

"But on the European plan generally there is more work that needs to be done," she said.

"There's a lot of implementation that needs to get underway and whilst it was extremely good and important that the G20 back that plan in, I think the eyes of the world are still focused on the Europeans to get on and implement the plan that they set up just about a week ago."

G20 finance ministers, including Swan, are set to meet as early as December to flesh out the details of how much the IMF's resources will be bolstered.

Editor: Yang Lina

English.news.cn   2011-11-06 14:56:49 FeedbackPrintRSS
CANBERRA, Nov. 6 (Xinhua)