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The Europeans, who have eight seats on the 24-member IMF executive board, are reluctant to give up two seats, to make room for cash-rich emerging market countries. Elizabeth Stuart, a spokeswoman for the development agency Oxfam, said that now that emerging market economies such as China have agreed to make increased contributions to the IMF's resources, it was important for European nations to drop their objections to reducing their voting shares in favor of the new economic powers. "Emerging economies have kept their part of the bargain by giving the IMF the money it asked for," she said. "Europe needs to make room at the decision-making table in exchange." Of the more than $430 billion in increased support that the IMF raised, the agency released a list of specific commitments from 12 individual nations ranging from $60 billion from Japan to $2 billion from the Czech Republic. The biggest total amount was $200 billion pledged back in December by Europe, including $150 billion from nations that use the euro currency and $50 billion from other European countries. The publicly announced amounts total $362.3 billion, leaving $68 billion in the pledges that Lagarde said she has received from China, Brazil, Russia and India. Officials offered no breakdown of those amounts and also did not disclose any possible timing of when these countries might make their pledges public. The support is coming in the form of loans the countries will make to the IMF, which will be able to use those resources to make loans to countries facing financial difficulties. While most other nations do not have to get approval from their legislatures for these loans to be made by their central banks, the U.S. Federal Reserve cannot extend credit to the IMF without approval by Congress.
[Associated
Press;
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