FM Sitharaman pitches for strong, quota-based and adequately resourced IMF

Finance Minister Nirmala Sitharaman on Saturday made the case for a strong, quota-based and adequately funded IMF at the center of the global financial safety net and climate action.

The 16th General Review of Quotas (GRQ) is expected to give developing economies a greater say at the International Monetary Fund (IMF).

According to an IMF resolution, the 16th GRQ must end by December 15, 2023. Any adjustment in quota shares is expected to increase the voting rights of emerging countries in line with their relative positions in the world economy.

Participating in a breakfast meeting of the IMF Board of Governors on “Dialogue on Policy Challenges” in Marrakesh, Morocco, Sitharaman expressed concern over the slowdown in global growth.

However, she said, India continues to be the fastest growing major economy with growth of 7.8% in the first quarter of 2023-24.

Regarding the escalating global debt vulnerability, she emphasized the importance of the Global Sovereign Debt Roundtable to promote cooperation on debt issues and reforms in the IMF’s policy of engagement with members in difficulty.

“FM Smt. @nsitharaman reiterated the commitment to a strong, quota-based and adequately funded IMF at the center of the global financial safety net and climate action on the principles of common but differentiated responsibilities and respective capabilities,” the finance ministry said in a post on X.

She stressed that a coordinated response by the global community will promote multilateralism in the spirit of ‘Vasudhaiva Kutumbakam’ – One Earth, One Family, One Future.