IMF board postpones decision on reform for three months
WASHINGTON (Reuters) – The International Monetary Fund’s board on Friday decided to postpone by three months its decision on how to raise emerging countries’ voting rights at the institution, as it seeks to get past U.S. foot-dragging on reforms.
The IMF’s member countries agreed in 2010 to give more voting power to countries like China and India, double the fund’s resources and reduce the dominance of Western Europe on its 24-member board.
But the Obama administration, which supports the reforms, has been unable to persuade the U.S. Congress to pass funding changes necessary for the agreement. The United States can block the IMF reforms because it holds a controlling share of votes.
To get around the United States, the IMF’s board had proposed several "interim" plans to raise the voting rights of some emerging countries. They had set an end-June deadline to decide on an approach.
But in a statement on Friday, the board said it had pushed off its decision until the end of September and would implement any changes by mid-December.