Xinhua: IMF Chief Urges U.S. Congress to Approve 2010 Quota and Governance Reform

The International Monetary Fund (IMF) Managing Director Christine Lagarde on Wednesday urged U.S. lawmakers to approve the 2010 quota and governance reform in an expeditious manner to better reflect the changing global economic landscape.

Speaking at the 30th Anniversary Annual Meeting of the Bretton Woods Committee held here, Lagarde stressed that the approval by the United States, the IMF's largest shareholder, will "trigger the whole thing."

The Board of Governors of the 188-member agency approved the quota and governance reform package in December 2010, which includes a doubling of IMF quotas, a shift in quotas to dynamic emerging markets and under-represented countries, and a proposed amendment to reform the executive board that would facilitate a move to an all-elected 24-member board with improved representation.

"The U.S. authorities recently submitted the 2010 package of reforms as a supplement to the budget. We welcome this and hope for prompt approval," she said.

In its budget plan for the 2014 fiscal year released last month, the Obama administration requested U.S. Congress to approve the package to promote global financial stability and U.S. leadership in the IMF.

"In an ever-changing world, we must mirror our evolving membership. So we are pressing ahead with our quota and governance reforms. We have made very good progress but the leadership of our largest shareholder is a critical element," Lagarde added.

The IMF previously had intended to make the 2010 reform package effective by October 2012, but the legislatures of some important IMF members including the United States have not given the green light to the 14th General Review of Quotas package.

On the sidelines of the meeting, Robert Menendez, Chairman of U. S. Senate Foreign Relations Committee, told reporters that he hoped to complete the IMF reform approval process within this year.

Created in 1983, the Bretton Woods Committee is a non-partisan organization that works to promote international economic cooperation and to foster strong and effective Bretton Woods institutions as forces for global well-being.

From: Xinhua
Time:  2013-05-16