REUTERS: RIYADH (Reuters) - British Prime Minister Gordon Brown said on Sunday he expected Saudi Arabia to pump money into the International Monetary Fund, part of moves to ensure the lender can bail out economies hit by a global financial crisis.
The worst financial crisis in 80 years, which started when a U.S. housing market boom turned sour, has raised fears of recession which one bank official said would spread across the globe hurting even fast-growing economies in Asia and South America.
China was the latest country to fear it might be hit by the downturn, saying it must maintain a fast pace of growth or risk heightening "factors damaging social stability."
Governments have cut interest rates, propped up banks and stepped up state spending to try to spur their economies, but some countries have been forced to turn to the International Monetary Fund (IMF) and other global lenders for help.
Brown urged countries with large financial resources, such as oil-producing Gulf states, to contribute to a new IMF facility and said he expected Saudi Arabia to contribute -- after some time.
"The Saudis, I think, will contribute so we can have a bigger fund worldwide," Brown told reporters in the Saudi capital, Riyadh, on a tour of the Gulf to also seek investment and help on oil prices.
"The oil producing countries, who have generated over $1 trillion from higher oil prices in recent years, are in a position to contribute."
He next heads to the gas and oil-producing Gulf Arab state of Qatar. Earlier in Kuwait, the finance minister said the government would base any decision to support international markets on potential returns and investment opportunities. >>> By Matt Falloon | November 2, 2008
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