BSP supports reforms in IMF voting

The Bangko Sentral ng Pilipinas (BSP) said it is supporting the initiative to reform the voting structure of the International Monetary Fund (IMF) to give emerging economies more say in its policy directions.

The IMF started the review of its voting system over a year ago and a broad consensus was reported among IMF member-countries that at least China, South Korea, Turkey and Mexico should get bigger IMF voting rights.

BSP governor Amando Tetangco Jr. told reporters yesterday that the Philippines was in support of improving governance in the IMF by basing representation of members on changing economic weight.

"I, for one, welcome efforts to align the voting powers of some regions or countries with their new, more significant relative positions in the global economy," Tetangco said.

The IMF’s voting system, or country member quotas, has been under review to determine how to give emerging powers in Asia more say in running the financial institution.

Reforms would be taken up by the IMF when its member-countries hold the annual IMF and World Bank meeting in Singapore next month.

Earlier reports indicated that the proposals now under discussion could increase the voting rights of China, South Korea, Turkey and Mexico by a range of 1.5 and 2.4 percent.

The IMF member quotas are calculated based on a member country’s gross domestic product (GDP) and international reserves. — Des Ferriols