G-20 backs IMF quota review, changes likely to take time

  • 16/10/2005

  • Financial Express (New Delhi)

Rich and emerging nations this weekend agreed that the division of national influence over the International Monetary Fund needed changing but they remained deeply divided on how to do it. Debate over national quotas, which determine IMF voting rights, has been mounting, with fast-growing Asian nations. IMF chief Rodrigo Rato, attending a meeting of Group of 20 finance ministers and central bankers near Beijing, said delegates had agreed to rebalance the quota system, now weighted in favour of leading industrial powers. "There is a general consensus that this is a very important question of legitimacy of the institution and that there is a need for it to be addressed in the near future,' he said.