Reforms to IMF hit serious deadlock: G20 official

Sun Apr 13, 2014 2:17am EDT
 
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By Lidia Kelly

WASHINGTON (Reuters) - Reforms to the International Monetary Fund have hit a deadlock despite a declaration from global financial chiefs that they would move forward without the United States if it fails to ratify the changes by year-end, a G20 official said on Sunday.

The inability to proceed with giving emerging markets a more powerful voice at the IMF and shoring up the lender's resources appeared the most contentious issue for officials from the Group of 20 leading economies and the representatives for all IMF member nations who met over the weekend.

In a final communique, G20 finance ministers and central bankers said they were "deeply disappointed" with the U.S. delay.

"Some said that we need to give the U.S. more space," the official, who participated in the G20 talks and spoke on conditions of anonymity, said. "I say we are at a dead end."

Any attempt to break the package of reforms, proposed by the G20 in 2010, would be disastrous not only for the United States, but for the whole group, he said, because most countries have already gone through the ratification procedures.

"If you pull the 2010 package apart, you will have to start anew," the official said. "And this factor cannot be overcome. How to overcome it? Nobody wants to go again through this process for the second time."

Other officials were not immediately available for comment.

MISSION IMPOSSIBLE?   Continued...

 
IMF Managing Director Christine Lagarde (C) takes her seat as she joins IMF First Deputy Managing Director David Lipton (L) and Singapore's Finance Minister Tharman Shanmugaratnam as they wait for the start of the International Monetary and Financial Committee (IMFC) meeting during the IMF and World Bank's 2014 Annual Spring Meetings in Washington, April 12, 2014. REUTERS/Mike Theiler