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Vice premier says China will help boost IMF cash

Published 03/26/2009, 07:33 PM
Updated 03/26/2009, 08:00 PM

* China will contribute to increasing IMF resources

* Would buy IMF bonds

* Forex reserves shouldn't dictate size of IMF contributions

* Will continue to take "forceful measures" to keep growth

(Adds details)

LONDON, March 26 (Reuters) - China will contribute to increasing International Monetary Fund (IMF) resources and would be willing to buy IMF bonds, according to Vice Premier Wang Qishan.

"China is ready to play an active part in exploring ways to raise resources and will contribute to this effort within its ability," he wrote in Friday's London Times newspaper.

Wang said the IMF should set the scale of contributions by per capita gross domestic product rather than the size of foreign exchange reserves.

"It is neither realistic nor fair to set the scale of contribution simply by the size of foreign exchange reserves," he wrote.

"If quota-based contributions fall short of immediate needs, the IMF can issue bonds, and China will be a buyer of the bonds."

Wang wrote that China would look at the so-called New Arrangements to Borrow, and that bilateral borrowing arrangements should be discussed separately between the countries concerned and the IMF.

China would continue to take "forceful measures" to maintain its fast growth. Despite measures to boost domestic demand the economy still faced "severe challenges".

"To cope with the crisis, a strong signal must be sent from the upcoming London summit that the international community is determined to act together to get through the time of hardship," he wrote, referring to next week's meeting of the Group of 20 nations. (Reporting by Ben Deighton; editing by Andrew Roche)

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