BRIC nations likely to favour IMF for Euro zone rescue package

3 November 2011: As the last week’s euro zone bailout package appears to be on a shaky ground, with Greece looking set to go for a popular count and Portugal already seeking changes, India and other BRIC nations are likely to favour an International Monetary Fund-sponsored package over bilateral rescue deals. China, with whom Europeans have been in talks for a possible assistance, though, is yet to reveal its cards.

Leaders of BRIC nations were likely to meet in Cannes to discuss a possible common stand on the last week’s euro zone bailout package ahead of the opening of G-20 summit later in the day. Though a meeting has not been scheduled as yet, India has already indicated its preference for the IMF route.

Other members of BRIC grouping, Russia and Brazil too have showed a preference for the IMF route. While so far India has not been approached by any of the troubled European nation for assistance. Though it is certain that the European debt crisis would take over the G20’s development agenda, the leaders are expected to take up the issue of growth and job creation alongside reforms of the international monetary system in the first working session. The grouping, representing 90 per cent of the global GDP, will be sending out a signal for putting in place concrete plans to handle economic crisis. The second working session would focus on development and trade.

Source: Business Standard