Expressing disappointment over the delay in implementing IMF quota reforms, the G20 countries today said its implementation is necessary to ensure the credibility and legitimacy of the Fund.
The proposed quota reforms at the International Monetary Fund (IMF), which would give greater say to the countries, including India, has been pending for quite some time.
In the communique issued after their two-day meeting here, the G20 Finance Ministers and central bank Governors said they “remain deeply disappointed with the continued delay in progress of the 2010 IMF Quota and Governance Reforms“.
“We reaffirm that their earliest implementation is essential for the credibility, legitimacy and effectiveness of the Fund and remains our highest priority,” it said, urging the US to ratify the 2010 reforms as soon as possible.
Meanwhile, IMF Managing Director Christine Lagarde said she fully shared G20’s deep disappointment with the continued delay in achieving the quota and governance reforms.
“I continue to strongly urge the ratification of these reforms as soon as possible,” she added.
The IMF quota reforms seek to provide greater say to emerging economies like India and China at the Fund, where the US and large European countries command high influence.
The 2010 reforms were originally propelled by Washington, and the President Barack Obama’s White House has repeatedly endorsed them.
However, the US Congress has refused to sign the deal, with some legislators not wanting to contribute more money to the IMF and others concerned about any erosion to the dominant US role at the Fund.
“We reaffirm our commitment to maintaining a strong, well-resourced and quota-based IMF... we look forward to progress on the SDR Basket Review in November,” the communique said.
The G20 group, including India, also welcomed the progress made in implementation of “strengthened” collective action and pari passu clauses in international sovereign bond contracts.