Lagarde for expeditious quota reforms at IMF

Brisbane: IMF Managing Director Christine Lagarde on Sunday said she agreed with G20 leaders' call for expeditious implementation of the quota and governance reforms at the global financial institution.

"I strongly agree with the G20's urging all our member countries to implement the IMF's 2010 Quota and Governance Reform as soon as possible," she said in a statement.

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 G20 communique after the 2-day meeting of the group's leaders here.

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 quota reform, once implemented, will increase India's voting share from the current 2.44 percent to 2.75 percent, following which the country will become the eighth largest quota holder at the IMF, up from the 11th position.

Commenting on G20 leaders' agreement to boost global GDP by over USD 2 trillion over next five years, Lagarde said decisive policy action by all is key to making growth strong, sustainable, balanced and inclusive, and to create needed jobs.

"This is a commendable effort, with significant benefits for the global economy. Implementation is now critical, with a strong accountability framework to monitor progress, supported by the IMF," she said.