G20 likely to boost IMF resources by $400bn-$500bn

naeem@coastaldigest.com (AP)
April 14, 2012
eco_G20-likely


Jeddah, April 14: The Kingdom and other new members of G20 should ask for more voting power at key global groupings such as the International Monetary Fund, a top Saudi economic analyst said yesterday as reports emerged that the world's 20 biggest economies are likely to agree to increase the resources of the IMF by between $400 and $500 billion.

G20 finance ministers are set to meet in Washington soon to discuss the IMF's call for more resources from January after the euro zone increased the size of its own crisis-fighting funds in March in response to G20 pressure.

Sami A. Al-Nwaisir, chairman of the board of ALSAMI Holding Group, said G20 members such as Saudi Arabia, Turkey, India, South Africa, etc. "should ask for more voting power and more concessions to better and favorable deal in trade and legal issues."

Al-Nwaisir added: "Once this is clear I think we would look at the world as small village but that notion should start from the people who originated the IMF first then other members of the G20 will follow."

In an exclusive report earlier yesterday, Reuters said the G20 economies are likely to agree to increase the resources between $400 billion and $500 billion, rather than the $600 billion initially sought by the IMF

"It is clear that the global imbalances are among the chief causes and manifestations of the structural problems that gave us the global economic crisis," Jarmo T. Kotilaine, chief economist at the National Commercial Bank, said in his reaction to the new report,

He added: "The IMF has already played an important role in supporting the EU in its efforts to contain the euro zone crisis. But this challenging time for the global economy is far from over and many of the structural weaknesses have proven remarkably persistent, which continues to pose risks for any recovery."

Kotilaine added: "The IMF will need additional resources to play an effective role in the process. Combining its capital increase with a more formal recognition of the changing balance of global economic power makes every sense."

IMF Managing Director Christine Lagarde, quoted by Reuters, said on Thursday that reaching an agreement on additional resources could take some time, a sign that next week's meeting may not be the last word.

Commenting on the latest developments, Al-Nwaisir explained: "The European countries only should increase their contribution. This should happen without asking other members of IMF to bear the expenses of bill that they have nothing to do with, in the first place, as this is a structural problem in the European economy".

He added: "What we are witnessing now is an attempt to raise new funds from new members of G20. I think this is too expensive bill for the new members to swallow while they see double standards in the approach of financial remedies in Europe."

He said the IMF handled almost the same problem in 1997 in a different way than now.

"In 1997, when the Asian crisis happened with Malaysia and other Asian countries the IMF's prescription was different than now with that of the European situation. The IMF asked the Asian countries at that time that they should work harder, change the structure of their economies and improve working habits and place their economies under very tough rules and regulations. The IMF should ask the European countries to take similar measures as they did for the Asian countries in 1997," Al-Nwaisir added.


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News Network
May 14,2025

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Despite a detailed rebuttal from the Narendra Modi government, U.S. President Donald Trump has, for the fourth consecutive day, claimed credit for brokering a ceasefire between India and Pakistan—an achievement he says prevented a conflict that “could have killed millions.”

Speaking at an investment forum in Riyadh, Trump remarked that the leaders of India and Pakistan could now even “go for a nice dinner” together, as tensions between the two nuclear-armed neighbors had de-escalated.

“Just days ago, my administration successfully brokered a historic ceasefire to stop the escalating violence between India and Pakistan,” Trump said. “And I used trade to a large extent to do it. I told the leaders, ‘Fellows, come on. Let’s make a deal. Let’s do some trading.’”

His comments came even as New Delhi firmly rejected the notion that the United States had any role in mediating the ceasefire, which brought an end to nearly four days of cross-border hostilities. India also dismissed Trump’s claim that he used the threat of halting U.S. trade with both countries to pressure them into backing down.

“Let’s not trade nuclear missiles. Let’s trade the things you make so beautifully,” Trump said. “They both have very powerful, strong, smart leaders. And it all stopped. Hopefully, it’ll stay that way—but it stopped.”

Trump went on to praise Secretary of State and National Security Advisor Marco Rubio, crediting him and others in his administration for their efforts.

“Marco, stand up. What a great job you did on that. Thank you,” Trump said. “Vice President JD Vance, Marco—the whole group worked hard. And I think [India and Pakistan] are actually getting along. Maybe we can even get them together a little bit, Marco, where they go out and have a nice dinner together. Wouldn’t that be nice?”

Trump continued, “We’ve come a long way. Millions of people could have died in that conflict. It started small and was getting bigger by the day.”

This marks the fourth day in a row—Saturday through Tuesday—that Trump has publicly asserted his administration’s role in defusing tensions between the two South Asian rivals, despite consistent denials from the Indian government.

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News Network
May 8,2025

US President Donald Trump says he is willing to reach an agreement with Iran that allows Washington to “blow up” Tehran’s nuclear energy facilities.

“It’s that simple,” he said during an exchange with conservative radio host Hugh Hewitt, on Wednesday.

“I would much prefer a strong, verified deal where we actually blow them up…,” Trump said, referring to Iran’s nuclear facilities.

Deal’s outcome: Either ‘Nice aggression’ or ‘vicious aggression’

The 78-year-old former president added that there were only two possible outcomes, namely “blowing them up nicely or blow them up viciously.”

This is not the first time, Trump and other American officials have urged “total dismantlement” of Iran’s nuclear energy program. The US president had last made the insistence during comments on the NBC's "Meet the Press" program.

Observers said such statements underline the US administration's continued aggressive approach towards the Islamic Republic and its nuclear energy program.

The adversarial standing comes while Washington and Tehran have been engaging in indirect talks since March. The talks’ initiation marked drawn-out absence of such engagement between the two sides that had been caused by Washington’s illegal and unilateral withdrawal from a historic nuclear deal between Tehran and others in 2018.

Most recently, Trump’s regional envoy Steve Witkoff said, “The president wants to see this solved diplomatically if possible, so we’re doing everything we can to get it going."

Trump’s remarks, though, diagonally contradict Witkoff’s statement about the president’s alleged interest in a diplomatic solution.

Trump also said potential American aggression against Iran’s nuclear sites had to result in “de-nuking them.”

The US and its allies have for long been trying to accuse the Islamic Republic of pursuing “nuclear weapons,” despite the country’s repeated avowal not to either pursue, develop, or stockpile such weaponry as per moral and religious imperatives.

Tehran’s peaceful nuclear policy has been verified unexceptionally by the International Atomic Energy Agency (IAEA) which has never found any indication of such pursuit, as it has put the country's nuclear activities under the most extensive investigative processes compared to any other member of the United Nations nuclear agency.

The Western narrative, though, has been used extensively to try to justify escalating sanctions, military threats, and covert operations targeting Iran and its nuclear infrastructure.

Nevertheless, the Islamic Republic has invariably vowed to deal effectively with attempts on the part of the US, its allied states, or proxies at engaging in military adventurism against the country.

The assertion was last reiterated by Amir Saeid Iravani, Iran's permanent ambassador to the United Nations, who underscored on Monday that the country would unquestionably defend its sovereignty against any threat or use of force.

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