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International Monetary Fund

Volume 450: debated on Wednesday 11 October 2006

To ask the Chancellor of the Exchequer what assessment he has made of the impact on UK interests of (a) Mexico, (b) Turkey, (c) China and (d) South Korea receiving increased voting rights within the International Monetary Fund. (92140)

The UK strongly believes that a more effective IMF serves both our national interest and the global good and welcomes the programme of governance reform agreed by Governors of the IMF on 19 September. The increased voting shares of China, South Korea, Mexico and Turkey recognise the changing weight of these economies in the global economy and are an important first step in strengthening the legitimacy, and hence effectiveness, of the IMF. The readiness of other members to accept offsetting reductions in their voting shares demonstrates the shared commitment to this goal. The UK’s voting share will fall from 4.93 per cent. to 4.85 per cent.

To ask the Chancellor of the Exchequer whether he plans to make representations to European governments arguing that (a) Mexico, (b) Turkey, (c) China and (d) South Korea should receive increased voting rights within the International Monetary Fund; and what assessment he has made of the impact of increasing the voting rights for these countries on the operation of the Fund. (92141)

All EU member states supported the recent agreement to increase the voting shares of China, South Korea, Mexico and Turkey. This is an important first step in a programme of reform to strengthen the legitimacy, and hence effectiveness, of the IMF.

The UK strongly believes that a more effective IMF serves both our national interest and the global good.

These reforms to IMF governance have been, and will continue to be, discussed at meetings of European Finance Ministers.