Russia Pushing for IMF Reforms Without the US

Russian officials are pushing for the International Monetary Fund to move ahead with planned reforms without the United States, which could mean the loss of the U.S. veto over major decisions at the global lender, sources said.

Russian Finance Minister Anton Siluanov brought up the idea at a meeting of top finance officials from the Group of 20 nations in Sydney late last month, two G20 sources told Reuters this week.

The failure of the U.S. Congress to approve IMF funding has held up reforms agreed in 2010 that would double the Fund’s resources and give more say to emerging markets like China.

The United States is the only country that holds a controlling share of IMF votes, meaning its approval is necessary for any major decision to go forward.

Moving ahead on reforms without Washington would likely require complicated changes to the IMF’s rules. But the discussions show the level of frustration within the G20 with the Obama administration’s inability to win the needed congressional support.

via Reuters

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