IMF to hike India's vote, quota shares

India has welcomed the IMF's plan to raise its quota and vote shares in the bank as a 'significant' first step that would have a 'catalytic effect' on reforms in the World Bank and other institutions under the UN umbrella.

"The IMF can now be justifiably proud that it is the first international organisation that has taken a significant step in reforming its governance structure," Finance Minister P Chidambaram said in Washington.

"This modest, albeit crucial first step will surely have a catalytic effect on reforms in the World Bank and other organisations under the UN umbrella," Chidambaram said.

The major reform proposal under which the quota share would be increased from 1.92 per cent to 2.44 per cent and vote share from 1.88 per cent to 2.34 per cent was endorsed by the International Monetary and Financial Committee (IMFC) of the IMF on Sunday.

The move would push India's position up to 11th among the 184 member nations of the Washington-based institution.

The IMFC-endorsed reform package, which is expected to be put to formal voting on April 28, came as India sought a realignment of votes allotted to countries in the IMF.

Chidambaram said a 'near consensus' on the new formula was more important than the second round of ad-hoc quota hike itself.

Chidambaram, who was speaking at a World Bank-organised event, also welcomed the forward movement on implementing the income model of the Crockett Committee, particularly on sale of 'post-Second Amendment Gold' and the creation of an endowment.

"I expect this proposal will be endorsed expeditiously by national authorities across the membership of the Fund and a significant source of steady income would be available without further delay," he said.