By Simon Miller
The UK has pledged another £10bn to the International Monetary Fund (IMF) taking its contributions to £40bn.
The Chancellor of the Exchequer George Osborne has pledged the £10bn to the fund which says it needs at least $400bn (£249bn) to cope with contagion from the ongoing eurozone crisis.
The agreement will anger backbench MPs as the money is the maximum the Chancellor can give without triggering a debate in the House of Commons over IMF contributions.
The deal is part of a broad agreement among non-eurozone member states and should see the IMF reaching the minimum $400bn but the US and Canada have refused to pledge any money.
Unveiling the commitment, Osborne commented: "Becasue we have taken tough action to rescue our own economy we can be one of the countries that can support the IMF."
Prior to the IMF spring summit, Britain has consistently refused to commit UK funds directly to another eurozone bailout but the country has come under pressure from other world leaders to commit the extra funds.
"It is a loan with interest, not a gift. Let me reiterate, it does not add to our deficit or national debt," Osborne continued. "It is not money that could otherwise be spent on public services, and no country has ever lost any money lending to the IMF."