New 2010 IMF Reform Deadline

Economics, FREEPOM

During a virtual press release by Chrstine Lagarde today, she was asked the question on the 2010 reforms.  Her answer gives the 15th of September as the deadline for the reforms to be enacted by the United States before the interim steps (Plan B) are implemented.

MS. LAGARDE: First of all I don’t think we should give up on the 2010 reform. We take every day as it comes. We take every contact with Congress representatives as they come. But I very much hope that we can continue to hope for a positive resolution of this 2010 reform, which is completely in the hands of the U.S. authorities. We have nearly 80 percent support in the membership, but we need the key member. Now, the IMFC, which is one of the key governing institutions of the IMF, has decided that if by the 15th of September this matter is not resolved satisfactorily, then we have to select the interim step that we will take forward in order to make sure that there is an element of down payment on the quota increase. So I’m not suggesting that the quota increase that was decided under the 14th review, which is often referred to as the 2010 reform will be completely delivered upon. That would be wishful thinking on my part. But I know that an interim step is very much in the cards and that it will be considered as a down payment compared with what we should achieve under the 2010 reform.

And she also mentions that the decline in Chinese’s stock market will not affect the SDR review.

Read the full transcript here.

Subscribe to POM for detailed analysis on macroeconomic trends.

SUBSCRIBE

All 3 month and 1 year subscriptions receive access to the epublication series The Economic Transition Papers.