You're reading: G20 will agree new formula for calculating IMF quotas when Russia chairs – Putin

Russian President Vladimir Putin thinks that the leaders of the G20 countries will be able to agree a new formula for calculating quotas at the International Monetary Fund (IMF) during the time Russia is sitting at the head of the table.

“We think that at the upcoming Russian summit the G20 will be able to
agree proposals for a new formula for calculating quotas that will take
full account of the modern distribution of forces in the global
economy,” Putin said during a meeting with G20 finance ministers and
central bank managers in Moscow.

The head of state said that the modern world financial architecture is in need of realignment, including at the IMF.

“In this connection, the G20 decision at the Seoul summit on
reforming the distribution of quotas and votes at the IMF absolutely
must be fulfilled,” Putin said.

Finance Minister Anton Siluanov later said that the G20 has so far
been unable to reach agreement on the IMF quota formula. “We have run
into certain difficulties agreeing the road map for resolving this
issue,” he said.

However, he said, the financial G20 meeting taking place in Moscow is
the first one this year. “There will be two more such meetings ahead of
the G20 summit. In all there will be four meetings, at which the
statements by the heads of states will be prepared. We hope that we
succeed in reaching a mutually acceptable resolution to these issues,
which we are putting on the agenda today,” Siluanov said.

At the meeting of G20 finance ministers and central bankers, Russia
also proposed focusing on development of capital markets, the role of
institutional investors, development banks, state investment and their more effective use, and creation of favorable conditions for foreign direct investment.

The Toronto agreements of 2010, which defined the indicators of the
debt sustainability indicators of individual countries, were also
discussed. “We expect it will be necessary to return and update those
agreements,” he said.