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IMF members discontent over US delay in quota reform — Russia deputy finance minister

October 13, 2014, 12:04 UTC+3 WASHINGTON
The leaders of the G20 group of advanced and leading emerging market economies agreed in Seoul in 2010 on reviewing the IMF’s quotas in favor of emerging markets and developing countries
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Russian Deputy Finance Minister Sergey Storchak

Russian Deputy Finance Minister Sergey Storchak

© ITAR-TASS/Mitya Aleshkovsky

WASHINGTON, October 13. /TASS/. Governors of the International Monetary Fund (IMF) said they were discontent over the US Congress delay in ratifying the IMF's 14th quota review in favor of emerging markets and developing countries, Russian Deputy Finance Minister Sergey Storchak said on Monday.

“Formally, this issue was not on the agenda, but only a rare minister did not speak on this matter,” Storchak said after an annual meeting of the IMF and the World Bank.

“The general tone of the discussion can after all be assessed as an attempt to exert at least some pressure,” the deputy finance minister said.

“While everyone understands that the US administration has limited possibilities, nevertheless, it is not good when the (US) executive branch refers all the times to the absence of a decision by the legislative branch,” the deputy finance minister said.

The leaders of the G20 group of advanced and leading emerging market economies agreed in Seoul in 2010 on reviewing the IMF’s quotas in favor of emerging markets and developing countries to better reflect the ongoing changes in the world.

The IMF’s 14th quota review stipulates that the IMF’s quotas should be doubled from 238.4 billion Special Drawing Rights (SDRs) to SDR 476.8 billion. The review also envisages a more than 6% quota shift from over-represented developed countries to under-represented developing countries.

The United States, which has a quota of 17.69% of SDRs and 16.75% of votes, has not ratified the quota review yet.

The IMF management is ready to elaborate some options of further steps in this situation, the Russian deputy finance minister said. “The point is that the basic principle of an institution operating on the basis of quotas is being breached,” Storchak said.

The IMF has been caught “in a juridical trap” when the USA can block any discussion on weakening its weight in the Fund, Storchak said. “A discussion on this issue can develop on the basis of a consensus, but there will be no consensus,” he noted.

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