BUSINESS

Modi for completion of IMF quota reforms at earliest

Source:PTI
November 16, 2015 18:28 IST

Amid clamour for more say of developing nations in the IMF, Prime Minister Narendra Modi on Monday expressed hope that the US would ratify the quota reforms of the multilateral lending agency at the earliest.

The Washington-headquartered International Monetary Fund (IMF) reviews members' quotas once in five years and the last such review took place in December, 2010. India has already consented to its quota increase under the review "IMF should remain a quota based institution and not depend on borrowed resources.

"I hope that the ratification of the reforms of 2010 in the United States would be completed at the earliest," Modi said in his intervention at the G-20 Working Session: Enhancing Resilience here.

The 2010 reforms were originally propelled by Washington, and the White House, under President Barack Obama, 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.

Once the review takes effect, India's share will increase from the current 2.44 per cent to 2.75 per cent, following which the country will become the eighth largest quota holder at the IMF, up from the 11th position.

Emerging economies, like India, China, Brazil and Russia have been asking for increased voting rights in IMF, which would reflect their growing share in world economy.

The IMF quota reforms are aimed at giving more voice and voting power to the emerging economies with regard to the functioning of the multilateral body.

Source: PTI
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