India to contribute $ 3 bn for IMF quota increase | world | Hindustan Times
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India to contribute $ 3 bn for IMF quota increase

world Updated: Nov 13, 2010 17:53 IST

India will have to contribute upto Rs 15,000 crore (about more than $ 3 billion) to the International Monetary Fund (IMF) following the decision of the Fund to double its quota.

While doubling its quota the IMF Board has also decided to shift 6 per cent shares in voting rights to emerging economies as part of governance reforms.

India and China are major beneficiaries of this decision with New Delhi's position climbing to 8th place above China in the IMF Board from its present 22nd position.

With the doubling decision, the IMF quota will go up from the present 214 SDR (Special Drawing Rights) to 428 SDR.

India will have to contribute about more than $ 3 billion to the increased quota, Indian official sources said.

The Summit of G-20 leaders, which ended here yesterday, approved the decision of the Finance Ministers and Central Bank Governors at the meeting of Gyeongju near here last month and the subsequent decision by the IMF on a comprehensive package of IMF quota and governance reforms.

The reforms are an important step towards a more legitimate, credible and effective IMF, by ensuring that quotas and Executive Board composition are more reflective of new global economic realities, and securing the IMF's status as a quota-based institution with sufficient resources to support members' needs, the leaders said in the Seoul Summit Document said.