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Brazil Says Emerging Countries Want Europe To Boost Firewall First

2/26/2012 6:59 AM ET

Emerging countries are ready to contribute to the International Monetary Fund's lending resources only if Europe strengthens its financial firewall to contain the debt crisis, Brazilian Finance Minister Guido Mantega said.

Reports said that he put forth two conditions before Europe for securing financial aid from emerging countries. The first condition was that the European economies strengthen their firewall and the second, implementation of the IMF reform plan that gives emerging economies more voting power in the decision-making process.

Meanwhile on Saturday, German Finance Minister Wolfgang Schaeuble said that any decision on increasing the size of Eurozone's bailout fund will not be taken before March.

European leaders are considering combining Eurozone's temporary rescue fund, European Financial Stability Facility, with its permanent successor European Stability Mechanism to boost the total lending capacity to EUR 750 billion.

by RTT Staff Writer

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