RBI calls for early review of IMF quotas

livemint.com:

RBI) governor Shaktikanta Das on Friday pitched for speedy completion of the general review of the International Monetary Fund to help countries in debt distress. Speaking at a seminar on the global economy organized by the finance ministry and RBI, Das said recent experience suggests countries facing financial difficulties go to other bodies beyond the IMF because of “perceived stigma" or lack of access.

“A bigger and stronger IMF that is capable of managing the levels of country risks assumes crucial importance," Das said. He noted that since the IMF’s support to a country is linked to the quota size of countries, “the sixteenth general review of quotas and its attendant requirements, including governance reform needs to be completed expeditiously".

“It may be helpful if programmes can be designed with less conditionality for countries with macro-fundamentals that are not sound but reasonably resilient, if they are not marred by balance of payments stress," added Das. Further, the RBI governor said that there was a need to be mindful of the financial implications involved in green transition.