BROWN DEMANDS MORE IMF RESOURCES

Mr Brown said an immediate increase in the 250 billion US dollar fund available to the IMF would lessen the risk of "contagion" from Eastern European countries like Hungary spreading around the world.

Speaking at 10 Downing Street before his departure for Paris for talks with French President Nicolas Sarkozy, Mr Brown did not rule out a British contribution to the enhanced fund, but made clear he believed the bulk of any additional money should come from China and the oil rich states of the Gulf.

The Prime Minister said: "It is in every nation's interest and in the interests of hard-working families in our country and every country that financial contagion does not spread."

Mr Brown said that in recent days he has spoken with IMF managing director Dominique Strauss-Kahn, President Sarkozy and German Chancellor Angela Merkel about his proposals, and added that they were also looking at similar ideas. He has also spoken with Hungarian PM Ferenc Gyurcsany.

Following the talks with Mr Sarkozy, the current president of the EU, he will meet Ms Merkel in London on Thursday.

Mr Brown said: "We have seen in recent days the financial crisis spreading to other countries - middle income countries, Eastern European countries.

"Capital flight has made a number of countries potential victims of this crisis.

"So in the last few days I have discussed the risk of contagion and the need to stabilise economies right across Eastern Europe."

The IMF has an arrangement known as the general agreement to borrow, under which countries with large reserves of cash make sums available to lend to states in financial difficulties, and the Fund has recently said it has 250 billion US dollars available for use, Mr Brown said.