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UPDATE 1-UK ready to provide extra $11 bln for IMF funding

Published 08/31/2009, 04:59 AM
Updated 08/31/2009, 05:03 AM
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* Darling urges EU to take lead on bolstering IMF funds

* Says UK government will "do more" to support recovery

* More action needed on tax havens, bankers' pay

LONDON, Aug 31 (Reuters) - Britain is ready to provide an extra $11 billion as part of a coordinated drive to increase the International Monetary Fund's resources, finance minister Alistair Darling said.

Writing in Monday's Guardian newspaper ahead of a meeting of G20 finance ministers on Friday, Darling said major powers would step up efforts to repair the world's financial system and secure economic recovery.

"In the UK we have already taken radical measures to get through the recession. We will do more," Darling said.

In April, world leaders pledged to treble the IMF's resources to $750 billion to help it support the emerging markets most hit by the recession.

Darling said Europe should take a lead in ensuring this target is met.

"Europe should set an example and do more to meet the target by committing up to $175 billion -- with the UK ready to provide up to an additional $11 billion, taking our total contribution to over $26 billion," Darling wrote.

Darling said there could be no let-up in the reform of the financial sector and G20 leaders needed "to go further" on bankers' pay and bonuses. More work also needed to be done to tackle the risks posed by tax havens, he said.

On the domestic front, Darling said he was confident growth would resume around the turn of the year. But he said rising unemployment remained a challenge and he would consider whether to take further action in his pre-budget report in the autumn.

"In the past year we have committed an extra 5 billion pounds to ensure that we don't leave people to languish on the dole. And in the run up to the pre-budget report I will consider further measures," he said.

(Reporting by Christina Fincher; Editing by Victoria Main)

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