The G20 finance ministers are likely to reach an outline agreement on reformation of the International Monetary Fund (IMF) at their meeting ending on Saturday, a reliable source said.
“We are extremely optimistic about the IMF reform as everyone has shown goodwill,” the source told AFP. Ministers from a group of 20 leading economies are preparing for a summit to be held in Seoul next month.
The summit would discuss IMF reforms and address the issue of providing greater empowerment to emerging economies such as China.
The outlined agreement takes Europe’s proposals into consideration, the source stated. It is anticipated that around five percent of the voting rights would be transferred and Europe would give up two seats in favour of developing nations, he added.
Summit host South Korea has been pressing the need for a deal on this issue. “Fulfilling commitments regarding the IMF (voting) quota as agreed earlier will enhance the credibility of the G20 meetings,” President Lee Myung-Bak said Friday in a speech which marked the launch of the ministerial meeting.