FM Sitharaman pitches for strong, quota-based and adequately resourced IMF

Finance Minister Nirmala Sitharaman on Saturday made a case for a strong, quota-based and adequately resourced IMF at the centre of the global financial safety net and climate action.

The 16th General Review of Quotas (GRQ) is expected to provide greater say to developing economies in the International Monetary Fund (IMF).

As per an IMF resolution, the 16th GRQ should be concluded by December 15, 2023. Any adjustment in quota shares would be expected to result in an increase in voting rights of emerging countries in line with their relative positions in the world economy.

Participating in a breakfast meeting of the IMF Board of Governors on the theme of 'Dialogue on Policy Challenges' in Marrakesh, Morocco, Sitharaman expressed concerns with regard to slowdown in global growth.

However, she said, India continues to be the fastest growing large economy with a growth of 7.8 per cent during the first quarter of 2023-24.

With regard to escalating global debt vulnerabilities, she highlighted the importance of the Global Sovereign Debt Roundtable to foster cooperation on debt issues and reforms in IMF policy to engage with members in debt distress.

"FM Smt. @nsitharaman reiterated commitment to a strong, quota-based and adequately resourced IMF at the centre of the global financial safety net, and climate action on the principles of common but differentiated responsibilities and respective capabilities," the finance ministry said in a post on X.

She emphasised that coordinated response of the global community will foster multilateralism in the spirit of 'Vasudhaiva Kutumbakam' -- One Earth, One Family, One Future.