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G20 Mulling Large Rescue Fund To Fight Euro Crisis: Reports

2/26/2012 7:48 AM ET

The Finance Ministers and Central Bank Governors of the Group of Twenty nations are working on securing a deal for a global rescue fund worth around $2 trillion to stave off Europe's protracted debt crisis, reports said Sunday.

Reports said, quoting a draft communique to be released after the meeting today, that the progress on talks regarding boosting IMF's resources will be reviewed in April when the leaders come together for their next meeting in Washington.

Germany has conveyed its readiness to discuss higher firepower for the Eurozone bailout fund. On Saturday, German Finance Minister Wolfgang Schaeuble said that decision on increasing the size of Eurozone's bailout fund will be taken in 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.

Brazilian Finance Minister Guido Mantega said yesterday that emerging countries are ready to contribute to the International Monetary Fund's lending resources only if Europe strengthens its financial firewall to contain the crisis. He also demanded more decision-making power for the emerging nations within the IMF.

by RTT Staff Writer

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