UPDATED ON:
Monday, November 03, 2008
00:28 Mecca time, 21:28 GMT
 
News Middle East
British PM appeals for IMF funds

Brown said the UK would welcome investment
from sovereign wealth [AFP]

Gordon Brown, the British prime minister, has said that the International Monetary Fund (IMF) needs "hundreds of billions of dollars" to assist economies hit by the global financial crisis.

Brown made the comments on a tour of the Gulf region.

He arrived in the Qatari capital Doha on Sunday.

Talking in Riyadh, the Saudi capital, a day earlier, Brown appealed to nations with large liquidity, such as China and the Gulf states, to add to the IMF's accounts.

"If we are to stop the spread of the financial crisis, we need a better global insurance policy to help distressed economies," he said.

"That is why I have called for more resources for the IMF - hundreds of billions of dollars on top of the $250bn they already have available - to lend to those countries at risk of financial collapse."

Brown met Saudi Arabia's King Abdullah on Saturday and is leading attempts to boost the IMF's financial reserves.

Referring to Gulf countries, he said: "The oil producing countries, who have generated over $1 trillion from higher oil prices in recent years, are in a position to contribute."

Soverign funds

Brown also stressed the UK's interest in receiving investment from sovereign wealth funds - of which there are many in the oil rich Gulf nations. The UK economy is edging towards recession.

"The Gulf states are an increasingly important source of inward investment to the UK," he said.

"As long as they play by our rules and operate in a commercial manner, we welcome investment from sovereign wealth funds in the UK."

In the past few days, Qatar and Abu Dhabi, in the United Arab Emirates, have invested more than $9bn in the UK's Barclays PLC bank.

Barclays declined to take help from the British government's bailout plan for its banks - which offered a total of about $60 million.

Brown will visit United Arab Emirates on the final leg of his tour.

Economic summit

The trip is something of a precusor to a summit of world leaders in Washington DC on November 15 to discuss the international financial situation, including contributions to the IMF.

The IMF has provided a total of $30bn to Iceland, Hungary and the Ukraine in loans since the financial crisis hit.

An IMF facility to provide loans for weakening economies due to the crisis was backed by Germany as well as the UK earlier this week. However, additional funds are needed for such a facility.

Brown has criticised the Organisation of the Petroleum Exporting Countries' (Opec) recent decision to cut oil production in an effort raise prices. He is likely to highlight these concerns on the tour.  

Within six months, oil prices have fallen by more than a half to less than $70 in the past couple of weeks.

 Source: Agencies
Feedback Number of comments : 5
 
eolltz
United States
02/11/2008
IMF funds
PM Brown, along with the Euro zone leaders are trying to convince the ME to invest there petro dollars into a euro-centric economic model as apposed to a U.S. one. A pre-emptive strike on U.S. dollar hegemony. Perhaps a necessary precursor to persuading the world to switch to a European based world reserve currency instead of the dollar. Who will protect Saudi Arabia from Iran if the U.S. becomes insolvent. Wars of attrition, and trillion dollar bailouts = a bankrupt nation(military).

Solly
United Kingdom
02/11/2008
IMF exploitation
The IMF is a western tool mostly has been used by the West to exploit the poor countries . By putting, conditions of trade policies, which are in there own interest. Bleeding the poor countries of their resources. Giving them loans, which they have to keep paying, for a very long time. Mr Brown has come with a begging bowl to China and the Middle East. This is the time to tell them, that the IMF should be run on more fair conditions and not on exploitation.

ribeekah
Afghanistan
02/11/2008
British PM appeals for IMF fund
Yes Solly, I agree with you. But as long as Britain is engaged in war, it ought not to be given any assistance via the IMF from "Communist" China and the middle east.

thomas
United States
02/11/2008
British PM appeals for IMF funds
The British and U.S. are behind "no peace" in Palestine-Israel issues. Saudis and others now must seek a condition to resolve such issues in lieu of Saudis and Middle East's economic investment. This is perfectly legitimate both time-wise and strategy wise.

Sajid
India
05/11/2008
When there is a crisis ,it is better to look at the root cause of the problem. What is wrong with the present system of financial management? Mr Brown will do good if he looks into the islamic finance management system and not just into the pockets of petro rich arabs

 
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