BRICS for conclusion of IMF quota reforms by 2019

The 5-nation BRICS economic bloc today pitched for concluding the long-pending IMF quota reforms by 2019 to give more say to developing nations in the multilateral lending agency.

The quota reforms will increase the voting rights of emerging economies like India in the 188-member International Monetary Fund.

India has voting rights of 2.64 per cent at the IMF. In terms of quota, India has a share of 2.76 per cent.

China's voting rights and quota are, 6.09 per cent and 6.41 per cent, respectively.

Others in the top 10 largest members of the IMF are the US, Japan, France, Germany, Italy and the UK.
 

As per IMF, a member's quota determines that country's financial and organisational relationship with it including subscriptions, voting power and access to finance.

In the Xiamen Declaration, issued at the end of the BRICS Summit's plenary session, the leaders of the five member countries resolved to foster a global economic governance architecture that is more effective and reflective of current global economic landscape, increasing the voice and representation of emerging markets and developing economies.

"We reaffirm our commitment to conclude the IMF's 15th General Review of Quotas, including a new quota formula, by the 2019 Spring Meetings and no later than the 2019 Annual Meetings," said the declaration.

The influential BRICS grouping comprise Brazil, Russia, India, China and South Africa.

The five leaders also said they will continue to promote the implementation of the World Bank Group Shareholding Review.

In July, the G20 nations had also emphasised the need to complete the quota reforms at the Washington-headquartered lending agency by 2019.

The block also agreed to promote the development of BRICS Local Currency Bond Markets and jointly establish a BRICS Local Currency Bond Fund, "as a means of contribution to the capital sustainability of financing in BRICS countries, boosting the development of BRICS domestic and regional bond markets".