Canada to give US$10 billion to IMF

OTTAWA (AFP) - Canada is to give an extra 10 billion US dollars in emergency aid to the International Monetary Fund to assist emerging markets and developing countries, Prime Minister Stephen Harper said in a statement.

"Canada is joining other G20 countries in committing an additional 10 billion US dollars that can be mobilized for IMF emergency assistance to ensure emerging markets and developing countries have the access to capital they need," said Harper.

The IMF has said it needs hundreds of billions of dollars more to meet increased demands from its 185 members as the global economy moves toward negative growth.

In the midst of the global economic downturn the body has come under intense pressure to reform, with critics charging it was unable to meet the crisis' challenges by injecting sufficient liquidity into under-stress markets.

The European Union has vowed to contribute around 100 billion dollars more to the fund, while the US has called for a tripling of the IMF's funds, without specifying what it would be willing to pay in dues.

In February Japan inked a deal to provide the fund with up to 100 billion dollars.

Brazil, Russia, India and China have also backed increasing the IMF coffers.

These emerging economies are also keen to break the US and European stranglehold on the institutions by adjusting voting rights.

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