As noted over the weekend, the UK, having vetoed the December 9 summit, has made it clear it would also likely back out of its IMF mandated contribution to save the Eurozone. In other words, the €30.9 billion that was supposed to come from the UK to rescue French and Italian banks, is now probably gone, a move which threatens to topple the latest Plan Z euro bailout in which broke countries pool money to bailout the same broke countries. Sure enough, Dow Jones confirms it:
- EU loans to IMF likely to fall short of expected EUR 200bln according to sources
- Eurozone may move on IMF loans without immediate UK support according to a EU source
And while below we present the latest breakdown of IMF contribution by member countries, courtesy of Reuters, how long before populist pressure in various Eurozone (and especially non-Eurozone) countries threatens to topple governments unless each and every "joint and several" contributor country pulls a UK? Because if the UK is allowed to save taxpayer funds, why not everyone else?
EU leaders set Monday, Dec. 19, as the deadline to decide which EU member country would contribute how much. Below are pledges made by various countries since Dec 9.
The Bundesbank said it would be prepared to provide additional bilateral loans of up to 45 billion euros. But it would only be willing to do so if other EU and non-EU countries also provide additional funds.
Estonian Prime Minister Andrus Ansip is in favour of joining other euro zone countries in contributing bilateral loans to the IMF, but needs to agree the technical details, the government's communication office said.
Belgium would lend around 9.5 billion euros to the IMF, Belgian Central Bank Governor Luc Coene said.
The Dutch parliament will support proposals to provide extra money to the International Monetary Fund as part of a solution to the euro zone debt crisis. The Netherlands, via its central bank, would lend a maximum of 17 billion euros to the IMF.
Slovakia will contribute 1.53 billion euros to the IMF.
NON-EURO ZONE EU
Poland will lend an additional 6.3 billion euros to the International Monetary Fund, its finance minister said.
Downing Street said it did not expect Britain to commit more than an additional 10 billion pounds ($15.5 billion) to the IMF.
The Swedish central bank said it was ready to lend up to 100 billion Swedish crowns ($14.3 billion) to the IMF to help it support the euro zone.
Lithuania cannot afford to join other European countries in making a bilateral loan to the International Monetary Fund, the finance ministry spokeswoman said.
The Baltic state is just about to exit a bailout programme led by the International Monetary Fund and European Union. Latvian Prime Minister Valdis Dombrovskis has said his country will not contribute any funds to the IMF boost.
The Czech government should ask the central bank to free reserves for a loan to the IMF only if all other countries outside the euro zone would give loans and Prague would be threatened by isolation if it does not, the Czech prime minister was quoted as saying. The Czech share would be about 3.5 billion euros, under a planned agreed by EU states last week.
The United States has been wary of additional resources for the International Monetary Fund to help Europe.
Japanese Finance Minister Jun Azumi expressed caution about any potential contribution by Japan to a rescue fund through the IMF, saying Japan would cooperate where it can but only after Europe comes up with a thorough scheme and resources needed to build a fire wall and prevent contagion of the debt crisis.
Bank of Canada Governor Mark Carney said more resources for the IMF was a decision for the government and that it would be taken in the context of a clearly specified resource need for resources for the global economy, not just Europe.
Russia is committed to giving at least $10 billion through the International Monetary Fund to support Europe's efforts to stave off financial crisis, a Russian presidential aide said.