IMF boosts voting power of China and three others
(Reuters)
Updated: 2006-09-01 10:23
WASHINGTON - The International Monetary Fund on Thursday agreed to increase
the voting power of China, South Korea, Turkey and Mexico in a two-year package
to be ratified by the fund's governors in Singapore next month.
The move, approved by an 85 percent majority of the IMF's 24-member board, is
a first step in trying to rebalance the voting powers, or quotas, to better
reflect the rise of emerging economies in Asia and elsewhere.
IMF Managing Director Rodrigo Rato confirmed the decision in a conference
call with journalists in Asia.
The board agreed to increase the quotas of all four by a combined 1.8
percentage points, board officials told Reuters.
The board also backed a second round of quota adjustments for more emerging
powers, based on a new formula for calculating quotas to be agreed on over the
next two years.
Members also approved increases in so-called basic votes, in a way that would
protect the shares of poor, mainly African countries, officials said.
"The second round of quota increases can't come into effect until the
amendments of the basic votes is ratified" by member countries, one official
said.
"It is just a way to make sure it is part of a package,"
the official added.
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