A senior official from the International Monetary Fund confirmed that the fund will continue with talks on increasing the size of its warchest at the same time as EU discusses how to build a firewall to contain its debt crisis.

IMF and EU

IMF Deputy Managing Director Naoyuki Shinohara said that as EU ‘s debt crisis threatens the global economy, the emerging countries understand the need to boost the IMF’s resources and expectations are building for developing nations will show some contribution in terms of money.

Some of the emerging economies could anger at the idea of bailing out wealthier European countries without reassurances that the euro zone can draw a line under its two-year old debt crisis this will create problem for IMF.

USA and EU

In an interview.Naoyuki Shinohara told Reuters that the talks are implemented to increase the regional firewall and the global firewall. He further added that IMF’s financial base need to proceed in parallel direction.

Wide set of agreements are developing between many countries and these agreements will ensure how much contribution and the modality will be contributed. In Mexico City officials from the Group of 20 rich and emerging countries meet for discussing the agenda regarding financial diplomacy that is needed to keep the global economic recovery on track. According to IMF about $1 trillion will be required to contain the euro zone debt crisis and half and Shinohara said half of that amount should come in the form of strengthening of the IMF’s war chest and half should be provided by EU. The United States, China and other countries outside of the 17-country euro bloc want to see its members stump up more money before they commit additional resources to the IMF. Japanese national said that Japan is also making consideration for slowdown the face of the euro zone crisis.