Disappointed with lack of progress in IMF quota reforms: EU

European Union today expressed disappointment over the non-implementation of IMF quota reforms, which would give India and other major emerging economies greater say in the multilateral lender.
"We need to reform Bretton Wood Institutions (IMF and World Bank). I am very disappointed to see lack of progress on the review of the quota formula in International Monetary Fund (IMF)," European Union Ambassador to India Joao Cravinho said at a panel discussion on Greece crisis here.
The IMF quota reforms seek to provide greater say to emerging economies including India and China at the Fund, where the US and large European countries command high influence.

The IMF quota reforms were originally scheduled to be carried out by October 2012.
The reforms were originally propelled by Washington and the US White House has repeatedly endorsed them. But the US Congress has refused to sign off on the deal, with some legislators not wanting to contribute more money to the IMF and others concerned about any erosion to the dominant US role at the fund.
In April, Finance Minister Arun Jaitley had also said governance reforms are required to ensure the International Monetary Fund's credibility, legitimacy and effectiveness.

"We are greatly disappointed that the 2010 Quota and Governance Reforms have not become effective in spite of the strong support of the global community for the reform," Jaitley had said in his address to the International Monetary and Financial Committee.

Once the quota reforms are carried out, India's share at IMF is set to rise to 2.75 percent from 2.44 percent, making it the eighth largest shareholder in the multilateral agency from its present 11th position.
On Greece crisis, Cravinho said: "There is no Grexit, if headlines were different then consequences would have been significant. It certainly deepens commitment on the both side."
"Everybody bent backward... It shows that it has been possible to balance solidarity and respectability," he added.
Cravinho, however added that it will be difficult for Greece Prime Minister Alexis Tsipras to sell bailout deal with the eurozone to Greece Parliament.

Greece, which is going through a financial crisis, has reached a desperately-needed bailout deal with the eurozone, which will prevent the country crashing out of the European Union with a single currency.
Greece's leftist Prime Minister Alexis Tsipras has agreed to tough reforms in return for a three-year bailout worth up to 86 billion euros (USD 96 billion), the country's third rescue programme in five years.