Friday, September 1, 2006

The Executive Board of the International Monetary Fund has agreed on a proposal to increase the quotas of China, South Korea, Mexico, and Turkey, the IMF Managing Director Rodrigo de Rato announced. The increases are part of a program of reforms for the organisation, addressing its governance and its macroeconomic monitoring process. The proposals need final approval at the annual meeting scheduled later this month.

Speaking at a press briefing in Washington DC on August 31, Mr. de Rato spoke on the current state of the global economy and outlined the reforms, which include a two-phase reshaping of the quota shares – the proposed increases announced today followed by the development for a new formula to come up with increases for a broader range of members.