Britain may contribute more to IMF if EU boosts aid funds

(DAVOS) - Britain will consider providing more aid to the EU through the International Monetary Fund if eurozone states first stump up more resources, Finance Minister George Osborne said Saturday.

Echoing US Treasury Secretary Timothy Geithner, who spoke Friday at the World Economic Forum in Davos, Osborne said the eurozone "needs to provide a significant increase in available resources" to fight the debt crisis.

"There aren't going to be further contributions to the IMF from other G20 countries, including Britain, unless we see the colour of their money, and I think that's a reasonable request," he warned.

In addition, Britain wants guarantees that in its support to the eurozone, the IMF will not relax the normal conditions applied to its lending criteria, including "helping countries, not currencies."

"If those conditions are met, then certainly Britain would think very carefully about providing more resources," he said.

"Of course I would have to go to my parliament to recommend that, but I would be willing to do so in those circumstances."

Speaking at the same panel, Japanese Economics Minister Motohisa Furukawa stressed Europe has itself first to make the "utmost effort" to tackle the crisis.

"Without the firm action of Europe, I don't think developing countries like China and other countries are so willing to pay more money for the IMF, even if IMF secured the returns," he said.

But if the eurozone was able to establish a credible firewall of its own, "in that condition, including Japan, I think that other countries... will be willing to support the eurozone through the IMF."