India opposes restructuring of IMF quotas

India has opposed the proposed restructuring of quotas in the International Monetary Fund and sought a greater say for the developing world.

"It is widely believed that the present 'quota' formula of the IMF is hopelessly flawed and outdated. Obviously, an ad-hoc quota redistribution based on this flawed formula cannot provide a durable solution. We need a consensus on a new formula. And we need it quickly. There must be a deep commitment to fundamental reform and there should be no postponement of a comprehensive review," Finance minister P Chidambaram said while addressing finance ministers of Commonwealth nations at a meeting in Colombo today.

Many countries find the present quota structure as favouring the US and Europe. The IMF meeting, slated for September 19-20, will take up the issue of an ad-hoc increase in the quotas of China, Korea, Mexico and Turkey.

A member's quota delineates basic aspects of its financial and organisational relationship with the IMF, including voting powers and access to finance.

Chidambaram said participation in the management of both IMF and World Bank had to undergo a change to reflect the current global realities.

"This is something all developing economies strongly endorse and I urge you to join me in Singapore to articulate our united view," he said.