Politics
Prime Minister Manmohan Singh said that he welcomed the efforts to strengthen the IMF resources and added that as announced earlier India will contribute US$ 10 billion.
Prime Minister Manmohan Singh in his statement at Second Plenary session of G-20 Leaders on “Strengthening the international financial architecture and the financial system and promoting financial inclusion” said that he welcomed the efforts to strengthen the IMF resources and added that as announced earlier India will contribute US$ 10 billion.
The Prime Minister pointed out however that progress in quota reform is proceeding more slowly than raising resources. He recognized that there are practical reasons why the quota reform agreed in 2010 will not be completed by the end of 2012, but it must be done expeditiously thereafter.
It is also important that the quota review schedule for January 2013 is completed in time. Quotas must reflect economic weights, in a manner that is simple and transparent, said the Prime Minister.
Manmohan Singh said that these objectives can be best achieved by recognizing the predominant role of Gross Domestic Product (GDP) on Purchasing Power Parity (PPP) basis in the formula without going into other variables. He further added that this basic position should not be compromised in any way and they need to reiterate the position strongly.
Welcoming the progress made in financial regulatory reform, the Prime Minister said that however much remains to be done. They also discussed the need to move towards a banking union in Europe to help strengthen financial stability.
The Prime Minister is also concerned that prudential rules adopted in banking regulation do not discriminate against lending to developing countries.
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