As per the recent press report, the Finance Minister, Mr. Pranab Mukherjee has denied to give more monetary resources to the International Monetary Fund (IMF) to help European bailout. During the G-20 meeting on reforms in the international monetary system the Finance Minister pointed out the decision.
He pointed out that the international monetary fund had more than trebled resources over the past few years when speaking about the adequacy of resources to solve the European crisis. He also said that the focus should on how to mobilize these resources quickly and the instruments of IMF should be flexible. Further, after addressing the issues of solvency the IMF should take steps to provide liquidity support.
He also said that the World Bank’s adequacy resources should also be considered along with the IMF. In the past three years the IMF’s resources had gone up from $250 billion to $750 billion. The G-20 members, including the US and Japan have stopped from providing more resources to the IMF rather they stressed on the greater role of the IMF to provide monetary assistance to solve the European debt crisis and even to adjust the lending rules in order to use the available resources effectively and rapidly.
Besides, Mr. Mukherjee also said that the member countries should exchange the information automatically to the member countries in order to accomplish tax compliance. He also insisted that as a part of Cannes deliverables, the member countries to exchange the past banking information and assistance in tax collection.