Japan cool on G-20 deal on IMF cash

TOKYO - Agence France-Presse

British Finance Minister George Osborne (L) is greeted by Jun Azumi for their talks in Tokyo last month. REUTERS photo

The G-20 is not yet ready to agree on providing more funds to the International Monetary Fund (IMF) to fight Europe’s debt crisis, Japan’s finance minister said yesterday ahead of a key meeting this weekend.

The Group of 20 nations “is not yet in a situation where they are moving in the same direction and are about to decide specific amounts” of additional funding for the IMF, Jun Azumi said at a news conference.
Azumi said this weekend’s meeting with his G-20 counterparts in Mexico City would give them a chance to “examine progress in the European situation”.

His comments come as eurozone chiefs hold crunch talks in Brussels on closing a deal for a massive new bailout for Greece, as its leaders also push for a huge debt writedown by creditors.

China and Japan -- two of the IMF’s biggest contributors -- share the view that “there may still
be some room for Europe to make efforts” to deal with its debt crisis, said Azumi, who met Chinese vice premier Wang Qishan last weekend.

The two Asian giants “will hold talks to agree on a specific amount before providing more funds, rather than having discussions with the IMF separately,” he said.

Last month Japan said it was ready to answer an IMF call for extra cash, saying it was “prepared to support European efforts to stabilise the market” based on strong efforts by European nations.