IMF reforms get approval from most member-countries

The proposed reform will shift over 6% of quota shares from over-represented to under-represented member

148 of the 188 member countries of the International Monetary Fund (IMF) have agreed to go for reforms in the quota system in the Fund.

At a recent review meeting, these 148 members, who have 77.4 per cent of the Fund quotas, had consented to the proposed quota increases, according to a release from the IMF.

The proposed reform would shift more than six percent of quota shares from over-represented to under-represented member.

As a result, the shares of many emerging market economies - India, China, Brazil and Russia - will increase. These four countries will rank among 10 largest shareholders in the Fund.

The 2012 governance and quota reform package was approved by the IMF board of governors on December 15, 2010. The reform will also double the total quotas in IMF from approximately 238.5 billion special drawing rights (SDRs) to approximately SDR 477 billion.

Emerging market economies, including India, have been calling for reforms in the IMF so as to represent the new world order, which they say is increasingly shifting towards the developing world.

The IMF and the World Bank are holding their annual spring meetings in Washington.