Agreement reached by eurozone ministers over £125 billion loan to IMF

Eurozone finance ministers have agreed to lend £125 billion worth of loans to the International Monetary Fund (IMF) in order to boost its resources to combat the debt crisis.

According to a report by Bloomberg, the Czech Republic, Sweden, Denmark and Poland – none of which are eurozone members – also pledged to contribute to the fund, although the UK refused to commit and said it will “define its contribution” in early 2012.

The four non-eurozone members may have to consult their respective parliaments before committing to the programme. Greece, Ireland and Portugal, which are under bailout agreements, will not contribute to the loan scheme.

Eurozone officials had hoped to reach the £168 billion target set in a meeting in early December, although to achieve this they would need a £25 billion contribution from the UK.

EU finance ministers held talks on Monday to finalise the loan deal and to create a firewall around Italy and Spain.

Speaking to the Wall Street Journal, an IMF spokesman says: “We welcome the EU finance ministers’ support for a substantial increase in the IMF’s resources, as we work to strengthen our capacity to fulfil our systemic responsibilities to our global membership.”

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