25 Mar 2009

Brown urges revamp of IMF with war chest of $US500b

10:52 am on 25 March 2009

British Prime Minister Gordon Brown has called for a revamped International Monetary Fund with funds of at least $US500 billion on hand to help countries cope with the financial crisis.

Mr Brown told the European Parliament he believed the common principles behind the United States, British and wider European plans for cleaning up banks' balance sheets would help rebuild confidence and restore lending to the wider economy.

He called for a reformed International Monetary Fund, which he said must have at least $US500 billion of resources.

Mr Brown also promised Eastern European countries that other European Union members would not walk away in their time of need.

Mr Brown hopes to persuade leaders at a G20 summit next month to agree on ambitious new spending to lift the world economy out of recession, but the Bank of England has warned the government that it cannot afford any more fiscal stimulus.