Brown seeks Saudi cash in crisis

By Matt Falloon and Christian Plumb

RIYADH/NEW YORK (Reuters) - Prime Minister Gordon Brown said on Sunday he expected Saudi Arabia to pump money into the International Monetary Fund, the latest salvo in an ongoing effort to contain the global financial crisis that is also expected to bring a new round of rate cuts this week.

The worst financial crisis in 80 years, which started when a U.S. housing market boom turned sour, has raised fears of recession that 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 toured the Gulf ahead of an event-packed week that could see Britain, the euro zone and Australia join a global easing cycle by cutting interest rates and which will be capped by a meeting of the finance chiefs from Group of 20 key economies in Brazil.

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, who was also seeking investment and help on oil prices, told reporters in the Saudi capital, Riyadh.

"The oil-producing countries, who have generated over $1 trillion from higher oil prices in recent years, are in a position to contribute."