G20 disappointed over slow pace of IMF quota reforms

BRISBANE: The G20 leaders today expressed disappointment over the slow pace of quota reforms at the International Monetary Fund, urging the US to ratify them to make the institution more effective and representative.

"We are deeply disappointed with the continued delay in progressing the IMF quota and governance reforms agreed in 2010 and the 15th General Review of Quotas, including a new quota formula," said the communique released after the meeting of G20 leaders.

Emerging counties, 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 implementation of the 2010 reforms remains our highest priority for the IMF and we urge the United States to ratify them," the communique said said, adding that global economic institutions need to be effective, representative, and reflect the changing world economy.

It said if the reform "does not happen by year-end, we ask the IMF to build on its existing work and stand ready with options for next steps".

The quota reform, once implemented, will increase India's voting share 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.