The U.S. Treasury Secretary Timothy Geithner said today that his country is committed to “full implementation” of the reform of quotas in the International Monetary Fund (IMF) as requested by the major emerging economies.
In his speech to the IMF’s Finance Committee, held today in Washington, Geithner acknowledged that reform of the Executive Board is “critical to improve the legitimacy and effectiveness of the Fund.”
It also has urged European countries to advance the reform of representation for emerging economies like China, Brazil or India.
The maintenance schedule for the reform of the Fund shares has been this week, which was held jointly between the spring meeting of IMF and World Bank (WB) and the ministerial meeting of G20 Finance, one of the demands of countries like Brazil.
Coinciding with the request of the emerging economies, Geithner said that the quotas should “reflect the relative weight of countries in the global economy, according to the Gross Domestic Product (GDP).”
U.S. Treasury Secretary has considered positive the agreement announced yesterday by the G20 to provide 430,000 million of additional resources to the IMF, the commitment, not detailed in quantities from China, India, Russia or Brazil.
United States was increasing outside contributions, which Washington had reiterated it saw no need increased funding and because the Congress, with the balance of power divided into election year, to approve disbursements.
Geithner said that “in Europe, their leaders have taken important steps to strengthen the response to the crisis, reduce financial stress and provide the foundation for greater stability.”
He also said that the success of measures to prevent the spread of the crisis “will depend on the willingness and ability of Europe, together with the European Central Bank (ECB) to implement the instruments and proceed with creativity, flexibility and aggressiveness to support countries , implement reforms and stay ahead of the markets. ”
Also, Geithner praised China has allowed a greater fluctuation in the exchange rate of the yuan and recalled that “flexibility” of the types is an essential tool to prevent risks in capital flows, while a step to continue to increase domestic demand in the Asian giant.
About their country, Geithner stressed that the government of President Barack Obama managed to consolidate the recovery with growth, job creation, strengthening the banking system and commitments to reduce the U.S. deficit, which he described as “a formidable long-term fiscal problem “.
According to Geithner, “the economy is gradually improving and strengthening, but the financial crisis to turn our economy into a deep hole and take time to fully repair and restore the economic security of the middle class.”
Category: Personal Finance