Britain's €30bn for IMF rescue?

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How much should Britain be paying for the IMF eurozone rescue? It's thought the final bill could be as much as €30bn as costs rack up. This is an expense that will have been discussed at the recent EU summit but which David Cameron has given little detail of - so far. The IMF claims that contribution talks are still on-going. But it seems likely that the UK, whatever the outcome, will have to dig deep.


More expense

Recently the IMF's own Survey Magazine stated that non-eurozone countries would be contributing 25% towards a new rescue deal - and a report seemingly endorsed by IMF chief Christine Lagarde. "European leaders agreed to make bilateral loans to the IMF of as much as €200bn - with €150bn contributed by eurozone members and €50bn from other members of the EU".

The majority of that other €50bn would almost certainly be paid for by the UK, given the diminutive size of other non-euro EU countries. Traditionally countries all add to a central IMF 'pot.' This pot can be used to help countries in financial difficulties. However IMF rules preclude it from attempting to save currencies or economic regions.

More negotiation

That said, the IMF has contributed, separately, large sums of money to the troubled economies of Ireland, Greece and Portugal. But a bail-out for a country like Spain would be hugely draining on its collective resources.

In the background, however, are worrying noises from not just other eurozone countries but China and Japan. Japan's foreign minister, Jun Azumi, has expressed concern about the terms of a deal, suggesting that Japan remains cautious of advancing any contribution towards a rescue package; China is reluctant to get too close to a deal also, until the EU recognises China's 'full market economy' status.

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