TORONTO (Reuters) - Finance Minister Jim Flaherty said on Wednesday there is no G20 agreement to create an International Monetary Fund lending facility for the euro zone.
“There have been discussions for some weeks about IMF resources and the possibility of increasing IMF resources,” Flaherty told reporters in Ottawa.
“There are some nuances to the positions of some countries, but I assure you there has been no commitment by the G20 to any specific resourcing plan.”
Japan’s Nikkei newspaper reported in its online edition that the Group of 20 advanced and emerging economies planned to put together such a facility and that key members such as Japan, the United States and China would contribute to the facility.
Flaherty reiterated Ottawa’s position that European countries have sufficient resources and that the IMF should use the funds to help poor nations. Canada has no interest in contributing to a euro zone rescue through the IMF, he said.
There have been “discussions for some weeks about IMF resources and the possibility of increasing IMF resources. Our position remains that the euro zone members need to use their own resources in the first instance to address their issues,” he said.
Flaherty also said there was a “legitimate concern” that Canada could experience another credit crunch if the European crisis deteriorates, even though bank exposure to debt-ridden European countries is “controllable”.
Reporting by Louise Egan; Writing by Jeffrey Hodgson; editing by Rob Wilson