No number yet on boost to IMF's firepower

Brussels: Talks on the size of loans from Eurozone national central banks to the International Monetary Fund (IMF) are starting at a technical level after Eurozone finance ministers gave the green light to explore the idea last Tuesday, officials said yesterday.

Eurozone finance ministers agreed on Tuesday to rapidly explore boosting the resources of the IMF through bilateral loans, so that the Fund can match the new firepower of the Eurozone bailout fund, which is being leveraged.

"No amount has been discussed at the political level," one senior Eurozone official involved in the talks said.

"Discussions are only starting at the technical level, so right now any number is pure speculation," the official said.

The Eurozone wants to boost IMF resources so that the fund could provide a credible backstop should Italy and Spain be cut off from the markets and need a multi-year emergency loan programme.

Eurozone officials have offered various guesses on the possible size of loans to the IMF.