By George Pascoe-Watson
Political Editor
http://www.thesun.co.uk/sol/homepage/news/money/article1868401.ece
THE world’s bank — the International Monetary Fund — is going BUST and must be bailed out, Gordon Brown warned last night.
The IMF has only got $300 billion left, it emerged – with dozens of countries queuing up for major handouts to keep afloat.
The British PM urged cash-rich China and oil sheikhs to give hundreds of billions so the IMF can keep giving out funds – and stop it going bust
Mr. Brown said: “This may not be enough. It is becoming increasingly clear to me we cannot delay and we now need substantial additional resources in addition to the $250 billion the IMF already has available.”
The IMF’s role is to help countries stave off bankruptcy. It handed over $37 billion to Ukraine this week and Hungary is also desperate for funds.
Dozens of others – especially in eastern Europe – will need big bailouts because of the global slump.
World leaders fear a Russian takeover move unless they are able to survive. China is cash-rich, having spent ten years banking profits in a special fund rather than investing them abroad
Oil-rich countries in the Gulf are also able to plough funds into the IMF. The UK supplies five percent of IMF cash, compared with China’s 3.7 percent.
Last night Mr. Brown held talks in Paris with French President Nicolas Sarkozy, who backed the PM in urging the reshaping of the IMF.
Mr. Sarkozy said: “We will work hand in glove to get out of this terrible crisis.”
Mr. Brown said: “Our first priority is to stop the contagion to other countries, including in eastern Europe, where there are problems emerging and action must be taken.”
