WASHINGTON, Jan. 31 (Xinhua) -- The International Monetary Fund (IMF) on Thursday urged all members to approve the 2010 quota and governance reform expeditiously, saying completing relevant reforms would be critical to enhance the agency's effectiveness.
"We have made very good progress on the 2010 quota and governance reform. We are very close to the finishing line," IMF chief spokesman Gerry Rice on Thursday said at a regular press briefing.
The IMF urged all member countries to approve the 2010 quota and governance reform as quickly as possible, Rice said in response to questions from Xinhua, adding that he was confident that the reform could be achieved without giving a specific date.
The IMF previously had intended to make the 2010 reform package effective before the 2012 Annual Meetings in October 2012, but the legislatures of some important IMF members including the United States have not given the green light to the 14th General Review of Quotas package.
On another front, the IMF's executive board on Wednesday night submitted its report on the outcome of the quota formula review to the IMF's 188-member Board of Governors.
The IMF normally adopts a general review of its quota about every three to five years. The Washington-based global lender was scheduled to complete the 15th round of quota formula review by January 2013.
The IMF's executive board "has had an enlightening series of discussions during the past year, and the membership is now in a good position to agree on an improved quota formula in the context of the upcoming 15th General Review of Quotas. We will be working actively with the Board and the membership in this regard, with the ultimate goal of reinforcing the legitimacy and effectiveness of the Fund, IMF Managing Director Christine Lagarde said on Wednesday in a statement.
The IMF noted "important progress has been made in identifying key elements that could form the basis for a final agreement on a new quota formula," but Board members also differed on some key elements of the quota formula and further discussions were needed, revealed one IMF policy paper released on Thursday.
Pushing forward the quota and governance reforms are "tough issues." On the quota formula review, there is significant common ground on the reform direction among membership, but there are differences of views that need to be resolved, Rice noted.
Each IMF member country is assigned a quota based broadly on its relative position in the world economy. Quotas determine a country's maximum financial commitment to the IMF, play a role in decisions on members' access to Fund resources, determine members' shares in general allocations of Special Drawing Rights (SDRs), and are closely linked to their voting power. The quota formula plays an important role in quota adjustments.
Some emerging economies have demanded for years more voting power in the IMF in line with their increased weights in the global economic system.