2nd Ld Writethru: G20 remain "deeply disappointed" with continued delay in IMF quota reform

The Group of 20 leading economies (G20) remained "deeply disappointed" with the continued delay in progressing the 2010 International Monetary Fund (IMF) quota reform, G20 finance ministers and central bank governors said in a communiqu Friday.

Recognizing the importance of these reforms for the IMF, G20 countries reaffirmed that the "earliest implementation" of the reform agenda was their "highest priority," they said in the communiqu after a two-day meeting.

To reflect the growing and underrepresented influence of emerging economies, the IMF 2010 reforms call for a 6 percent shift in quota share to the emerging economies. It will lift China to the third largest shareholder. Shares for Russia, India and Brazil will also see hefty rises. The reforms, however, have been delayed for five years due to the blocking by U.S. Congress as the United States retains a veto.

After last April's G20 meeting, G20 Finance ministers set the year-end of 2014 as the deadline for the United States to ratify the long-delayed IMF quota reforms and threatened to move forward without it if the United States fails to do so. But U.S. Congress still didn't approve the reform plan until now.

"We continue to urge the United States to ratify the 2010 reforms as soon as possible," said the communiqu.

"We support the U.S. administration's all efforts to deliver," said Agustin Carstens, chairman of the International Monetary and Financial Committee (IMFC), IMF's policy advisory committee, at a press conference after the G20 meeting.

G20 countries also want to push forward the interim steps currently under consideration among IMF membership, as the final passage of the reform remains distant.

"We call on the IMF Executive Board to pursue an interim solution that will meaningfully converge quota shares as soon as and to the extent possible to the levels agreed under the 14th review," said the communiqu.

"Interim solution would imply some benefits for some countries. Certainly large fast growing emerging markets would have more recognition, would have larger quota share and so on," said Carstens, adding interim solution would still be "second best" compared with the full implementation of the 2010 quota reform. Endite