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EU, Asia Finance Ministers Agree To Move On IMF Voting In Sept

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EU, Asia Finance Ministers Agree To Move On IMF Voting In Sept

The International Monetary Fund (IMF) will move to give more say to emerging economies in Asia and elsewhere at its meeting in Singapore in September, European Union and Asian finance ministers said [in Vienna] on Sunday, reports Reuters (04/09).

Power in the IMF, the lender of last resort to governments, stems from quotas, which are broadly linked to the size of a countrys economy. However, these quotas are changed only every five years, with the next review due only in 2008 and Asian and other emerging economies feel they are underrepresented in the Fund, which is dominated by the United States and Europe. At the end of a meeting of Asian and EU ministers, Austrian Finance Minister Karl-Heinz Grasser, whose country holds the EU presidency, told a news conference, (…) [t]he position of the Asian countries and European countries was that… we are flexible…. (…)

ITAR-TASS (Russia, 04/10) notes that (…) [t]he problem is that none of the existent IMF members is ready to give away its share of votes, so a possible way out is a larger general quorum. (…) Grasser said that the issue would be discussed in detail at the next session of the IMF and World Bank governing bodies in Singapore, and debates with the US might be rather interesting. (…)

More: noticias.info

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