UK 'may ramp up eurozone support' with more cash for IMF

Prime Minister David Cameron has left open the door to Britain giving billions of pounds of new support to the International Monetary Fund (IMF) in a move likely to infuriate eurosceptic MPs in his own Conservative party.

The last time Cameron sought MPs’ permission to increase Britain’s IMF contributions, 30 MPs from his own party joined forces with Labour to oppose it, the FT reports.

Cameron’s team stresses no decision has been taken to increase Britain’s contributions beyond the £10bn approved by MPs in that vote last July.

But government insiders say the situation could change if Japan and other leading countries such as China and Brazil decided to increase their support for the IMF to help it deal with the debt crisis, accoring to the FT.

Britain is already under pressure from eurozone countries to increase its IMF commitments by about €30bn as part of a European package of new resources.

Eurozone members have already committed to €150bn, but the Prime Minister has so far refused to join in.

However, he has left open the possibility of Britain doing more as part of a global package.

New resources for the IMF would supplement a war chest of about $384bn, which is too small for a large-scale rescue package for both Spain and Italy.