Tensions among some of the world's leading economies are on a boil over a plan to raise new resources for the International Monetary Fund (IMF) to contain the euro zone debt crisis and a quest by emerging economies to win more say in the global lender. The IMF said it would need US$600 billion (S$748 billion) in new resources but IMF Managing Director Christine Lagarde (pictured here) said the lender may not need as much money as it had thought because economic risks had waned. --PHOTO: AFP
WASHINGTON (REUTERS) - Tensions among some of the world's leading economies are on a boil over a plan to raise new resources for the International Monetary Fund (IMF) to contain the euro zone debt crisis and a quest by emerging economies to win more say in the global lender.
World finance leaders gathering in Washington next week will focus on proposals for countries to contribute more money to the IMF so it is better prepared in case of a fallout from any further escalation of Europe's debt crises.
Emerging market countries like China, Brazil and Russia are willing to put up more money for the IMF but they want something in return: greater voting power in the global lender.
It has become a hot-button issue given negotiations formally began this week on the next phase of IMF voting reforms to be completed in 2013. The emerging market push likely means Europe's voting share will be further diluted.
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