Washington - US lawmakers approved changes to International Monetary Fund (IMF) governance that is to give more of a voice to emerging markets such as China and India in exchange for greater congressional oversight of the fund.
The House and Senate on Friday passed a $1.1-trillion (R16.57trln) spending plan that includes language implementing the IMF reforms, which have been awaiting congressional ratification since 2010, a delay that spurred global criticism of the US.
The package awaits the signature of President Barack Obama, who supports the change.
Ratification also clears the way for the Washington-based fund to begin reviewing another round of changes that could give China and other emerging markets an even bigger voting share. The IMF’s executive board is expected to consider a timetable as early as January for the next review of the institution’s share system.
IMF managing director Christine Lagarde said the changes approved on Friday will “strengthen the IMF in its role of supporting global financial stability.”
“The reforms significantly increase the IMF’s core resources, enabling us to respond to crises more effectively, and also improve the IMF’s governance by better reflecting the increasing role of dynamic emerging and developing countries in the global economy,” she said.
The IMF’s executive board approved a plan in 2010 to increase the voting share of emerging economies and double the amount of permanent funding available to the Washington-based fund, which serves as a lender of last resort to countries that face capital shortfalls.
Bloomberg