Russia to Suffer Quota Reduction
The IMF members overwhelmingly approved yesterday a new voting system, which will be to the good of large emerging economies and some developing nations but to the detriment of Russia. Of 185, 175 nations supported the reform, ensuring the majority of 93 percent instead of the required minimum of 85 percent. But the U.S. Congress may step in to veto the quota redistribution.
The voting shows that the overwhelming majority supports the reform, IMF Managing Director Dominique Strauss-Kahn announced yesterday. April 28 was the deadline for the IMF members to determine their attitude to redistribution of voting power. As a result, 175 IMF countries of 185 voted for the reform, building up the majority of 92.93 percent.
Once the voting redistributing is approved by some legislatures, including the U.S. Congress, the new formula of quota calculation will take effect. It will take into account the country’s GDP, transparency of economy, its volatility and reserves. The target to attain is evidently to grant more power to developing nations, and China, Brazil, India, South Korea and Mexico are the obvious winners. They will have the vote addition of 0.88 percent (China; 3.81 percent as a result) to 0.27 percent (Mexico).
Russia, however, that is often in group with above nations (the so-called BRIC states) will be in league with the loosers. Its stake in the IMF stock capital will narrow from the current 2.79 percent to 2.49 percent. In IMF, they view Russia as the state of excessive representation with the voting share above the global unit weight of economy.
www.kommersant.com
All the Article in Russian as of Apr. 30, 2008
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