BRIC nations not ready to capitalize IMF: Brazil
Brazil, Russia, India and China agreed on Friday they will not put capital in the International Monetary Fund unless it develops more flexible instruments that would give them more power in the fund, Brazil's Finance Minister Guido Mantega said.
By Agencies |
WASHINGTON: Brazil, Russia, India and China agreed on Friday they will not put capital in the International Monetary Fund unless it develops more flexible instruments that would give them more power in the fund, Brazil's Finance Minister Guido Mantega said.
A long-awaited reform of IMF quotas is the final goal of the BRIC countries, but provisional instruments could be used to capitalize the fund in the short term, Mantega said, after a meeting leaders of the BRIC group in Washington.
Among those instruments is the issuance of a bond by the IMF. The existing credit line known as New Agreement to Borrow, or NAB, could also be used if it is revamped to allow emerging countries to have more say over the use of the money.
A long-awaited reform of IMF quotas is the final goal of the BRIC countries, but provisional instruments could be used to capitalize the fund in the short term, Mantega said, after a meeting leaders of the BRIC group in Washington.
Among those instruments is the issuance of a bond by the IMF. The existing credit line known as New Agreement to Borrow, or NAB, could also be used if it is revamped to allow emerging countries to have more say over the use of the money.
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