IMF urges US to ratify reform package

The International Monetary Fund (IMF) Managing Director Christine Lagarde has called on the US to overcome political differences for speeding up its approval process of the agreed IMF governance and quota reforms.

In this increasingly interconnected world, "the IMF is currently working toward a set of governance reforms that will strengthen further our capacity to prevent and resolve crises;

"...and at the same time, will help broaden our representation to better reflect the changing dynamics of the global economy," reported Xinhua citing Lagarde at the US Chamber of Commerce Thursday.

"These 'quota' reforms need the support of all our member countries - including the United States," she added.

On Dec 15, 2010, the IMF's Board of Governors approved a quota and governance reform package.

It included a doubling of IMF quotas and a shift in quotas to dynamic emerging markets and under-represented countries, and a proposed amendment to reform the executive board that would facilitate a move to a more representative and all-elected executive board.

But the legislatures of some important IMF members including the US, the IMF's largest shareholder, have not given the green light to the reform package. Legislation of the US Congress is needed to implement the reforms.

Lagarde noted that the global growth remains "subdued" despite "some signs of recovery," adding the IMF will release its updated forecast for the global economy ahead of its annual meetings in October.