Millennium Post

USA has failed to push IMF reform: China

“The Chinese side is again deeply disappointed by the US Congress’s failure to include the International Monetary Fund (IMF) 2010 quota and governance reform package into its appropriation bill,” said Foreign Ministry spokesman Hong Lei.

At the G20 Brisbane summit, the USA was pressurised to ratify the IMF 2010 quota and governance reform package by year-end. “The implementation of the 2010 reforms remains our highest priority for the IMF and we urge the US to ratify them,” G20 leaders had said in a communique.

As the IMF’s largest single shareholder by far, the US ratification is essential for the necessary endorsement of 85 per cent of the membership by voting power. The plan to give the IMF more funding and allowing a slight watering-down of US influence hit a brick wall in the USA.

The final budget legislation, passed by US Congress late Tuesday, failed to include funding for the IMF, dashing hopes that the US would endorse the reforms by the year-end deadline, state-run Xinhua news agency reported.

The IMF will now begin to draft alternative options for a new set of crucial governance and funding reforms as early as January. Hong said implementing the 2010 reform plan is crucial for the credit, effectiveness and legitimacy of IMF.
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