Barack Obama, the US president, arrives at Los Cabos for the G20 summit.
The G20 meeting is expected to call on nations to increase contributions to the International Monetary Fund. The UK has previously pledged £10bn.
Mexico’s president Felipe Calderon, who is hosting the G20 summit which starts today in Los Cabos, said:
“I estimate that there will be a larger capitalisation than the pre–accord reached in Washington, which will be finalised here, but I don’t want to speculate by how much.
“I hope there’s a very important agreement about the IMF.”
Angela Merkel, the German chancellor, and François Hollande, the French president, have delayed their arrival at the summit to await the full result of the elections in Greece, amid fears that the vote could lead to a Greek exit from the euro.
The two leaders are deeply divided over demands from other governments, the IMF and investors to agree a timetable for the pooling of debts via eurobonds alongside the fiscal and banking union that most now believe is required to preserve the euro.
The rising tide of fear was underlined by Robert Zoellick, the outgoing president of the World Bank.
“Europe may be able to muddle through but the risk is rising,” he said yesterday. “There could be a Lehman moment if things are not properly handled.”
Meanwhile, the BRICS bloc of Brazil, Russia, India, China and South Africa are expected to pledge tens of billions of dollars in new loans to the IMF bailout fund at a meeting before the opening of the G20 summit.
China’s Vice Finance Minister Zhu Guangyao predicted the group would pledge at least $60bn and thus boost the firewall up to the International Monetary Fund’s target of $430bn.
“China is confident that the IMF will realize its $430bn and China will pitch in,” Mr Zhu told reporters as national delegations began to arrive at the luxury hotels lining the Los Cabos coastline.
Mr Zhu said the BRICS and other emerging powers had pledged at the previous G20 summit to come up with the funds, adding: “And so during this Los Cabos summit a specific amount will be announced.”
The IMF fund will serve to backstop governments that are struggling to cope with debt repayments, but eurozone leaders will still face pressure from their G20 peers to make reforms to head off future financial crises.
The head of the Organization for Economic Cooperation and Development said Europe had the resources to deal with the crisis but must “take down the scaffolding” around EU institutions such as the European Central Bank.
“The ECB can help stabilize the bond market and the ECB really is the bazooka,” Angel Gurria said, noting that the bank had already effectively provided a trillion euros over a month to cope with the crisis.
“The problem is if you go into your championship bout with one hand tied behind your back, you have a pretty fair shot at losing,” he warned.
“Europeans have to display the awesome firepower that is at their disposal, and they have to transmit the message that they’re willing to use the awesome firepower,” he said.