IMF finds $428.5 billion in new funding

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BRUSSELS, April 23 (UPI) -- Finance leaders in Europe said so-called BRIC countries would increase contributions to the International Monetary Fund and have more say in IMF decisions.

After a meeting in Brussels led by Finance Minister Tharman Shanmugaratnam of Singapore, the IMF said "continued progress" was necessary to deal with Europe's financial crisis and "secure financial stability."

The money secured from developing nations during the weekend can be used to rescue eurozone countries burdened by debt as the continent appears headed toward a second recession, the EUobserver said Monday.

The IMF said it secured $428.5 billion in fresh funding for its general fund. The BRIC countries are the economically developing nations of Brazil, Russia, India and China. In return for the larger contributions, they expect more say in IMF decisions, the EUobserver said.

"Undertaking bold structural reforms will be crucial to boosting confidence and productivity, facilitating rebalancing within the monetary union, and promoting strong and balanced growth," finance ministers said in a statement at the end of the meeting.

Finance Minister Guido Mantega noted the economy of Brazil would be third behind Germany and France if it were in Europe, but that Brazil had the voting power equivalent in the IMF of the Netherlands.

Britain said it would contribute $14.4 billion to the rescue fund, but only make the money available when the structural reforms were put in place.

"I take reforms one step at a time. Everybody wants to have a bigger share of the same pie, so there will have to be give and take," said IMF Director Christine Lagarde.

The United States and Canada have not agree to increase their contributions to the IMF.