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| Edited By: |Source: PTI |Updated: Mar 18, 2018, 05:25 AM IST
Finance Minister Pranab Mukherjee said on Sunday it would be wrong to conclude that BRICS economies have set up conditions for their financial contributions to the IMF, but pointed out that a number of countries were yet to approve the quota reform being demanded by the grouping.
Mukherjee said practical problems were the reason why Brazil, Russia, India, China and South Africa (BRICS) group could not announce a contribution at the just-concluded annual Spring meeting of the International Monetary Fund and the World Bank here.
Mukherjee, who chaired the BRICS finance ministers' meeting this week, said while the new government in Russia is yet to be formed, the Chinese are yet to complete their process, and Brazil also wants some time.
Earlier, India decided to defer its announcement on making its contribution to the IMF.
"From Indian side also I had the problem, though I had obtained the approval of the Prime Minister over telephone. The normal practice is that we have to get the approval of the Cabinet. That process was also not completed determining the quantum. Therefore, it was decided that we will announce that we are contributing to the fund, but exact quantum would be communicated in due course," Mukherjee said.
As such, the Finance Minister argued it would not be correct to conclude that BRICS countries have set any conditions before contributing to the increase of the fund.
"It is not the case. When I discussed this issue, then it was found that there are some practical problems of making an announcement at this meeting," he explained.
Mukherjee, however, did point out that the IMF quota reform has so far fallen short on the number of countries that are required to approve it.
"So far the quota reform is concerned, we have given our views. But for the decisions which we have taken in 2010 for that the countries having at least 70% of the total share of the vote will have to approve," he noted.
"Up to now those countries which have voting share up to 53.7% have approved. But there is a shortfall in number. Both numbers and voting figure are not there," he said.
He said for the next round of quota reform which will be completed by 2014, various suggestions have come and two rounds of discussions have taken place at the board level.
"But discussion is going on, negotiation is going on," Mukherjee said.
In the US to attend the annual spring meeting of the International Monetary Fund and the World Bank, the Finance Minister is scheduled to leave the United States from New York early morning India time.
