The Hindu Business Line : Virmani goes to IMF, says developing nations need more quota

NEW DELHI: The issue of giving more representation to developing and emerging economies in the IMF still remains to be resolved even as the G-20 has agreed to increase their share by five per cent, Mr Arvind Virmani, who will be joining the Fund as Execu tive Director this month, said.

“The basic idea is to even the balance (in IMF between developed countries and developing, emerging economies)...I think that objective remains for emerging and developing countries,” Mr Virmani, whose term ended yesterday as Chief Economic Advisor said.

G-20 nations have agreed to increase quota of developing countries in International Monetary Fund (IMF) by at least five per cent at their meeting in Pittsburgh. However, India and other emerging nations are arguing for seven per cent increase in the quo ta, Mr Virmani, who will be representing India, Sri Lanka and Bangladesh in IMF, said.

These three countries have 2.35 per cent voting share in IMF. He said the issue could be resolved by convincing every one and giving reasons for even representation in the IMF. The quota of developing countries is around 44 per cent in the IMF.

When G-20 countries had agreed in September to transfer five per cent quota to developing countries, Prime Minister Dr Manmohan Singh had described it as a compromise figure. - PTI

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