News Column

G-20 urges U.S. to ratify 2010 IMF reforms

February 23, 2014

SYDNEY, Feb. 23 -- (Kyodo) _ Finance chiefs of the Group of 20 major economies called on the United States to ratify the 2010 International Monetary Fund Quota and Governance Reform under which emerging economies will be given greater voting rights.

"We deeply regret that the IMF quota and governance reforms agreed to in 2010 have not yet become effective," the G-20 members said in a communique released after they wrapped up their two-day meeting in Sydney.

"Our highest priority remains ratifying the 2010 reforms, and we urge the U.S. to do so before our next meeting in April," they added.

IMF Managing Director Christine Lagarde, who attended the G-20 gathering, also said in a statement, "I look forward to continuing discussions on this matter and many of the issues explored in Sydney at the meeting of the International Monetary and Financial Committee (IMFC) scheduled for April in Washington."

In 2010, the IMF member economies agreed on a set of reforms to shift 6 percent of voting rights to developing economies through redistribution of quotas and the number of board members, given the growing clout of these countries in the global economy.

But the Congress of the United States -- the largest stakeholder in the Washington-based institution with 17 percent of voting rights -- last month rejected the IMF reform plan, with some Republican lawmakers arguing that it would effectively ask the world's biggest economy to spend more amid budgetary constraints.

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Source: Japan Economic Newswire

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