Publications
Partners
Paris - Finance Minister Pravin Gordhan warned on Friday that the resources of the IMF and European rescue fund may be "inadequate" if debt contagion spreads further, but that emerging economies could help.
"The resources that are available in the EFSF (European Financial Stability Facility) and IMF (International Monetary Fund) are inadequate if the contagion continues to spread any further," Gordhan said on the sidelines of an OECD conference in Paris.
Speaking in Paris at the organisation of developed nations ahead of a meeting of G20 finances ministers this weekend, Gordhan said the so-called Brics nations - Brazil, Russia, China, India and South Africa - could be called in to assist struggling European economies.
"The bigger of the Brics countries have said that they would be in a position to help international institutions if they are requested to," he said.
"It all depends on how the EFSF is leveraged by the Europeans themselves," he said.
The minister said that ahead of a G20 summit in France on November 3-4, non-European G20 nations would be looking for assurances that Europe is coming to grips with its financial troubles.
"Europe is at the epicentre of the current crisis," he said, adding that "Europe has been behind the curve for the last year or so."
"We are looking for assurances from our European colleagues that by the time the summit of the G20 takes place, we will have a clear message that will create confidence that Europeans are dealing with these issues and that the world can begin to stabilise itself," he said.
"The resources that are available in the EFSF (European Financial Stability Facility) and IMF (International Monetary Fund) are inadequate if the contagion continues to spread any further," Gordhan said on the sidelines of an OECD conference in Paris.
Speaking in Paris at the organisation of developed nations ahead of a meeting of G20 finances ministers this weekend, Gordhan said the so-called Brics nations - Brazil, Russia, China, India and South Africa - could be called in to assist struggling European economies.
"The bigger of the Brics countries have said that they would be in a position to help international institutions if they are requested to," he said.
"It all depends on how the EFSF is leveraged by the Europeans themselves," he said.
The minister said that ahead of a G20 summit in France on November 3-4, non-European G20 nations would be looking for assurances that Europe is coming to grips with its financial troubles.
"Europe is at the epicentre of the current crisis," he said, adding that "Europe has been behind the curve for the last year or so."
"We are looking for assurances from our European colleagues that by the time the summit of the G20 takes place, we will have a clear message that will create confidence that Europeans are dealing with these issues and that the world can begin to stabilise itself," he said.
