Governance reforms of IMF gets India nod

NEW DELHI: India has approved changes in the in the Articles of Agreement of the IMF that seek to reform the multilateral body and provide greater representation to emerging economies.

Under the new dispensation, all 24 executive directors of the IMF will have to be elected by the members, as against the earlier system of having a member representing each of the five largest quota (shareholder) countries.

"The Union Cabinet gave its approval to certain amendments to the IMF's Articles of Agreement on reform of the executive board of the IMF," I&B Minister Ambika Soni told reporters here.

These amendments "represent a major overhaul of the Fund's quotas and governance and (will) help in strengthening the Fund's legitimacy and effectiveness," she added. "The proposed amendments would facilitate a move toward a more representative, all-elected executive board, ending the category of appointed executive directors," she said.

The changes "are part of efforts at the IMF to reform its governance structure to give greater representation to emerging market and developing countries to reflect the new global realities," Soni added.