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Manmohan regrets progress in quota reform slow than raising resources

In his second intervention at the plenary session of the Summit of the Group of 20 leading economies, Prime Minister Manmohan Singh regretted that progress in quota reform is proceeding more slowly than raising resources.

twitter-logoPTI | June 20, 2012 | Updated 08:28 IST

Prime Minister Manmohan Singh on Tuesday voiced concern over the very slow progress in IMF's quota reforms and asserted that quotas must reflect economic weight in a manner that is simple and transparent.

In his second intervention at the plenary session of the Summit of the Group of 20 leading economies, Singh regretted that progress in quota reform is proceeding more slowly than raising resources.

Singh said it is also important that the quota review schedule for January 2013 is completed in time.

The Prime Minister's remarks came a day after India announced a $10 billion contribution to the IMF's additional firewall of $430 billion to help the world body in stabilising the Eurozone.

"Progress in quota reform is proceeding more slowly than raising resources. I recognise that there are practical reasons why the quota reform agreed in 2010 will not be completed by the end of 2012, but it must be done expeditiously thereafter," he said.

"Quotas must reflect economic weights, in a manner that is simple and transparent," the Prime Minister said, as G-20 leaders reviewed the progress in the International Monetary Fund (IMF) reforms agenda.

Once the quota reform is carried out, India's share at IMF is set to rise to 2.75 per cent from 2.44 per cent, making it the eighth largest shareholder in the multilateral agency from its present eleventh position.

The implementation of the quota reforms has been delayed as countries such as the US have not yet ratified the proposal.

The prime minister also said that prudential rules adopted in banking regulation did not discriminate against lending to developing countries.

Welcoming the progress made in financial regulatory reform, he however said much remained to be done.

He said the G-20 leaders discussed the need to move towards a banking union in Europe to help strengthen financial stability.

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