Global finance leaders to discuss IMF voting power reforms

Wed Apr 17, 2013 11:05pm EDT
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By Lesley Wroughton

WASHINGTON (Reuters) - Global finance leaders will do a stocktaking of IMF voting power changes when they meet in Washington this week amid concerns that a key IMF reform package is being held up in the U.S. Congress, a tough sell in a tight budget year.

Without mentioning the United States, IMF Managing Director Christine Lagarde on Wednesday repeated a call to member countries to approve the 2010 package, which would boost the voting power of emerging countries like China and India that have long called for more say in the IMF to reflect their growing economic might.

The voting power issue will be discussed by the Group of 20 developed and emerging countries and by the IMF's steering panel, the International Monetary and Finance Committee, starting on Friday.

"There isn't really much new in terms of issues on the table," a senior International Monetary Fund official, speaking on condition of anonymity, told reporters.

"As soon as the U.S. approves it, it will come into effect. Certainly the view of the membership is that it should happen as soon as possible, and that is certainly our view, and the U.S. is also committed to getting it done," the official said.

While approval of the package is being delayed by the United States, there has been little progress since January among countries on agreeing a new formula for calculating members' voting shares.

The official acknowledged that further discussions hinged on updated economic data due in June.

The 2010 deal was meant to have been fully authorized by countries in October last year. But the Obama administration put off asking Congress to fund it last year to avoid controversy before the November presidential elections.   Continued...

Visitors are silhouetted against the logo of the International Monetary Fund at the main venue for the IMF and World Bank annual meeting in Tokyo October 10, 2012. REUTERS/Kim Kyung-Hoon