G20 commits to ensure IMF has adequate resources: draft

G20 nations are committed to ensuring the International Monetary Fund has adequate resources to deal with the debt crisis, a draft statement from finance chiefs meeting in Paris said Saturday.

The G20 bloc of leading economies will hold further talks on the subject during a summit in the French city of Cannes on November 3 and 4, sources close to the negotiations told AFP.

Giving the IMF, the world’s lender of last resort, additional resources has been at the heart of discussions of G20 finance ministers and central banks in Paris on Saturday.

Major emerging nations like China, Brazil and India appear prepared to reinforce the IMF to ensure it has adequate firepower to deal with the possibility that a major eurozone country such as Spain or Italy gets snared by the debt crisis or it spreads further.

France, which presides over the G20 up to the Cannes summit, favors enlarging the IMF’s funds. But Germany is hesitant and the biggest IMF contributor, the United States, has said it believes it has sufficient funds.

The G20 nations are also expected to praise the eurozone’s efforts to contain the debt crisis, while urging it to provide a credible plan to resolve it by the Cannes summit.

They are also expected to reiterate pledges to undertake steps to support global growth and provide support to banks.