British PM seeks IMF cash from Saudis
British Prime Minister Gordon Brown is trying to top up the International Monetary Fund's reserves by convincing oil-rich Gulf states to contribute hundreds of billions of dollars.
Brown said on Sunday he expects Saudi Arabia will help boost IMF reserves, which would be used to help bail out economies hit hardest by the global financial crisis.
"The Saudis will, I think, contribute so we can have a bigger fund worldwide," he said after a meeting with Saudi Arabia's King Abdullah late Saturday and business leaders early Sunday in the Saudi capital, Riyadh.
The IMF has already given emergency loans worth $30 billion US to Iceland, Hungary and Ukraine. Pakistan is asking for a $5 billion bailout.
The IMF's reserves for bailouts total $250 billion, but Brown said hundreds of billions more will be required as more countries ask for help.
"The oil producing countries, who have generated over $1 trillion from higher oil prices in recent years, are in a position to contribute," Brown said.
Any funds from Gulf states are unlikely to be pledged before a meeting of G-20 nations to hammer out potential reform of the global financial system to prevent a repeat of the current crisis. The meeting, scheduled for Nov. 15 in Washington D.C., will also be attended by Abdullah.
"I believe that your country has a crucial role to play and your voice must be heard," Brown told a breakfast meeting of business leaders in Riyadh, before leaving for Qatar, his second stop of a four-day tour.
Last week, he called for a doubling of the emergency fund used by the IMF to prop up ailing economies, and said China and Russia, each with large foreign exchange reserves, are in a position to help.
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