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Sweden ready to set up skr100 billion contribution for IMF controlled Euro fund

Tuesday, 20 December 2011
Sweden is prepared to stand up to Skr100 billion in loans to the IMF for the Fund to help the troubled euro area countries. It would be recalled that Sweden had promised to contribute in helping the troubled EU countries only through the IMF.

The Swedish minister of Finance, Anders Borg said last nigh after a telephone conference with EU finance minister other in which he agreed to keep to the Swedish own part of the bargain.

Sweden's contribution however will depend on how other non-euro countries think. If other countries are contributing too little, Sweden’s contribution will be reduced. So far, interest has been cool from the outside world. In addition to Sweden promises Czech Republic, Denmark and Poland are also ready to set up the loan.

Sweden's commitment is also related to the conditions imposed on countries that are eligible for the loans. But a Swedish IMF support also requires parliamentary approval.

The framework for the euro rescue package was sewed together at the summit on 9 December in Brussels. Then the EU leaders themselves were given a ten-day period, to bring in €200 billion for the rescue fund to be established in the International Monetary Fund (IMF) direction.

EU finance ministers are discussing intensively how much different countries should contribute and what conditions should apply.
To give the IMF a greater role in the rescue of the euro zone is an important piece of the puzzle in order to regain market confidence and to build a more stable financial firewall to prevent the crisis spreading to more countries and banks.

EU urges the world to help the rescue fund.
“The EU welcomes the G20 countries and other financially strong IMF members to support efforts to safeguard global financial stability by contributing to increasing the IMF's resources to fulfil global financial safety net,” says the chairman of the Eurogroup, Jean-Claude Juncker, according to AFP, reports Swedish television.
By Team

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