Ottawa, August 24, 2012
Archived - Harper Government Announces Canada’s Ratification of 2010 IMF Quota and Governance Reforms
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The Honourable Jim Flaherty, Minister of Finance, today announced that Canada has ratified the 2010 International Monetary Fund (IMF) quota and governance reforms, ahead of the fall 2012 deadline agreed by G-20 leaders in Los Cabos, Mexico, in June.
“These reforms are part of a broad and ongoing cooperative effort to strengthen the international financial architecture,” said Minister Flaherty. “Our action reflects Canada’s strong interest in promoting effective IMF governance and enhancing the voice and representation of emerging markets and developing economies. These rebalancing measures will strengthen the legitimacy and effectiveness of the IMF.”
The amendments to the IMF’s Articles of Agreement, endorsed by the IMF membership in 2010, modify its governance arrangements and realign quota shares to better reflect the changing relative weights of the IMF’s member countries in the global economy. When the agreement is implemented, there will be a shift in the IMF quota shares of over 6 per cent to dynamic emerging markets and developing countries. The composition of the IMF’s Executive Board will also change with the addition of two emerging market chairs and removal of two advanced European chairs. The amendments will come into effect once three-fifths of IMF member countries representing 85 per cent of the Fund’s total voting power ratify them. Discussions among IMF member countries on future quota reforms have now begun.
“The global economy is shifting, and it is important for the legitimacy of the IMF that its governance reflects the world we live in,” said Minister Flaherty. “I look forward to further reforms that strengthen the IMF’s ability to provide well-balanced advice and support to its members.”
For further information, media may contact:
Mary Ann Dewey-Plante
Office of the Minister of Finance
Department of Finance
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