India's Prime Minister, Dr Manmohan Singh has announced that the country will contribute $10 billion to the IMF's additional economic security fund of 430 billion meant for the Euro Zone.

"The International Monetary Fund has a critical supportive role to play in stabilizing the Euro Zone. All members must help the Fund to play this role," said Dr Singh. The PM is on a visit to the Latin American country to attend the G20 summit.

He said that the European banks must be provided liquidity without neglecting issues of solvency. He said that a crisis in the European banking sector could disrupt the global economic growth. He also said that the Group of 20 nations need to send a strong message to the markets that the European nations will take all steps to support their banking system and the world community will back a credible European action.

He also pointed out that the liquidity must be provided with efforts to return quickly to debt sustainability n the European region. He agreed with the point of view that austerity along will not solve the European debt problem.