Participants stand near the IMF logo during the 2018 International Monetary Fund/World Bank Annual Meeting in Nusa Dua, Bali, Indonesia, October 12, 2018.Reuters/Johannes P. Cristo/File photo Obtaining license rights
WASHINGTON (Reuters) – The United States should require China to help struggling poor and middle-income countries restructure their debts as a condition of changing the International Monetary Fund’s ownership structure, a former U.S. Treasury Department senior development official says. experts said Wednesday.
Nancy Lee, a former assistant Treasury secretary at the Center for Global Development think tank, told reporters that countries that expand their quotas and shareholdings at the IMF should help them return to sustainability. He said it was “reasonable” to make that claim. debt.
US Treasury Secretary Janet Yellen said China, the world’s largest sovereign creditor, was an obstacle to debt relief. U.S. officials said China would not accept losses on loans unless private creditors and multilateral development banks did the same.
IMF member countries are scheduled to discuss the shareholding structure of distressed financial institutions at their annual meeting in Morocco next week.
Major emerging market countries such as China, India and Brazil have long wanted greater voting rights in the body, and this is their first chance to increase their share since 2010.
In return, the United States is asking IMF members to agree to contribute more money to increase their lending power without changing the U.S.-led shareholding structure.
“If a country wants a larger share of the IMF’s governance, it should also aim to advance the Fund’s goal of helping countries finance their growth paths in a sustainable way.” said Mr Lee. “If a country is not on the agenda, it’s a little difficult to argue that a larger allocation is needed.”
Lee said he agrees with the views expressed by Jay Shambaugh, the U.S. Treasury Department’s top international official, in a speech last month. A U.S. Treasury spokesperson did not respond to a request for comment.
Shambaugh said it is important that “all countries, especially those whose share is expected to grow, respect the role and norms of the IMF and work to strengthen the international monetary system.”
He did not name China, but said this would include greater debt relief and greater exchange rate transparency. This is a longstanding criticism of the Chinese government by the Ministry of Finance.
Reporting by Andrea Shalal and David Lawder.Editing: Andrea Ricci
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