Russia is following the reform of the ten largest shareholders of the IMF

Russia is following the reform of the ten largest shareholders of the IMF

WASHINGTON, December 18. /Corr. Andrew Shitov/. Russia and three of its partner in the BRICS – Brazil, India and China – are among the top ten member countries of the International monetary Fund (IMF) on the size of the national quotas. This is a consequence of the reform of quotas and votes in the Fund, which was approved in 2010 but only now being implemented after the U.S. Congress finally stopped its block. This is stated in the press release, issued on Friday a press-service of the IMF.

The strengthening of the IMF

“The approval by Congress of these reforms is a welcome and critical step forward that will strengthen the IMF and its role in maintaining global financial stability,” said the managing Director of the Fund Christine Lagarde. “A more representative, modern IMF will be even better equipped to meet the needs of all its 188 member countries in the twenty-first century,” she added.

In addition, she said, “the reforms significantly strengthen the Fund’s resources” that would allow him to “respond more effectively to crises”, and “improve the management system of the IMF, reflecting the growing role of dynamically developing countries in the global economy”.

The value of the reform for Russia and its partners

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According to the decisions of the 2010 Russia moves to the “table of ranks” of the IMF from 10th place to 9th, and its quota increased to 2.7% of the vote. In General, the top ten countries in the world by the IMF to include in addition to the above-mentioned countries of the BRICS, the largest shareholder of Fund – the USA, Japan and four major European powers: Germany, great Britain, France and Italy.

However, the overall ratio of votes between developed and developing countries in the Fund varies only slightly, from 60.5% to 39.5 percent before 57,7% 42,3% now. It is clear that such a shift in the balance of power principle does not matter.

The main provisions of the reform

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Following the reform, as stated in the press release, increase the national quota of all members of the organization. Consequently, total IMF resources increase to approximately $659,67 billion Before they totaled $billion 329,83

As previously explained, the correspondent of TASS experts, due to the blocking of reform in the U.S. Congress to Fund all the past years not enough own funds. So many of its anti-crisis program for different countries it carried out through its own borrowing, the benefit he is able to get loans on very favorable terms.

The Board of Directors of the IMF abolished the category of appointed Executive Directors. Henceforth, all Directors will be elected. Before the governments of the five countries with the largest quotas had the privilege to appoint their representatives to the Council.

As members 188 and seats on the Board of Directors, only 24, it is clear that many of the Directors represent groups of countries. To facilitate their work, those who oversee seven countries and more continue will be allowed to have not one, but two alternates.

Lost a couple of seats

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In the press release emphasizes that the quota and voice of the poorest members of the IMF in the preparation and adoption of plans of reform were “protected” and “developed countries Europe”, i.e. a relatively small but wealthy Western European countries “had agreed to reduce their combined representation on the Board of Directors on two chairs”.

The main shareholder of the organization, having in it a blocking stake of votes were and remain the USA. That is why the Congress alone could have a few years to obstruct the implementation of reforms endorsed by the entire international community.