news G20 leaders opening wallets at summit; US$500 billion to go to IMF, say sources

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G20 leaders opening wallets at summit; US$500 billion to go to IMF, say sources



1 hour, 57 minutes ago





By The Canadian Press

LONDON - Leaders of the world's rich and major developing countries are opening their wallets in the battle against the global recession.

Canada says it will join the other Group of 20 countries meeting at a crisis summit in London and ante up another US$10 billion for emergency assistance to be administered by the International Monetary Fund.

Canada will also contribute $200 million to the IMF to help inject liquidity into the trade finance market.

Canadian sources told The Canadian Press the group will likely approve giving more than US$500 billion in total to the IMF so it can increase loans to struggling governments.

Finance Minister Jim Flaherty said in a statement that ensuring "the international flow of capital and strengthening international trade are critical to bringing the world out of a global economic crisis."

The sources also said Canada, France and Germany had persuaded the leaders to back tougher language in the final communique on regulating financial institutions and international oversight.