IMF tells members to approve funding hike

The International Monetary Fund, on Friday, called on members to move to ratify the fund’s crucial doubling of capital, warning it might miss the target next year for completing the key reform.

With pressure rising on the IMF to strengthen the resources it uses to rescue economies, the fund said members representing only 36 per cent of shares in the Fund had ratified the $367 billion increase and quota reforms agreed in 2010.

The IMF and that it needed to have endorsements from 70 per cent of the quotas for the overall quota reform plan to take effect. With the reform boosting the voting shares of rising economies like Brazil, India and China, the Fund had targetted next September’s annual meeting to reach that level.

“With only 10 months remaining on this timeline, the Fund is far from reaching the necessary thresholds for the entry into force of the 2010 quota and governance reforms,” it said.