IMF / BRICS BANKS

The International Monetary Fund today called on its members to approve IMF governance reform before October 2012, when the Annual Meetings are held in Tokyo. The reform will give emerging markets countries greater voting power on the IMF Executive Board. IMF

• Categories: News & Features / News Stories / Unifeed
• Video Length: 00:01:16
• Production Date: 3 May 2012
• Asset Language: Original
• Corporate Name: INTERNATIONAL MONETARY FUND - IMF
• Subject Topical: ECONOMIC DEVELOPMENT; FINANCING; ECONOMIC CONDITIONS
• Geographic Subject: BRAZIL; CHINA; INDIA; RUSSIAN FEDERATION
• MAMS Id: U120503c

Description

STORY: IMF: BRICS / BANKS
TRT: 1. 16
SOURCE: IMF
RESTRICTIONS: NONE
LANGUAGE: ENGLISH / NATS

DATELINE: 3 MAY 2012, WASHINGTON, DC

Shotlist

WASHINGTON, DC – RECENT

1. Wide shot, exterior, IMF

WASHINGTON, DC - 3 MAY, 2012

2. SOUNDBITE (English) Gerry Rice, Director, External Relations, IMF:
“The IMF is urging our members to complete the necessary steps as expeditiously as possible. The G20 has urged that progress be made by the time of our annual meeting in Tokyo, so we are pressing for that also.”
3. Cutaway, reporters
4. SOUNDBITE (English) Gerry Rice, Director, External Relations, IMF:
“All the BRIC countries will be amongst our top ten shareholders once this 2010 governance and voice reform is approved.”
5. Cutaway, reporters
6. SOUNDBITE (English) Gerry Rice, Director, External Relations, IMF:
“What is needed is a comprehensive diagnosis. It’s critical to do the due diligence of these banks’ assets before taking a final decision on this approach. In the meantime, the banks should be urged to clear as much as possible off their balance sheets.”

WASHINGTON, DC – RECENT

7. Wide shot, exterior, IMF

Storyline

The International Monetary Fund called on its members to approve IMF governance reform before October 2012, when the Annual Meetings are held in Tokyo. The reform will give emerging markets countries greater voting power on the IMF Executive Board.

So far, 75 members with almost 47 percent of voting power have accepted the reforms. The IMF needs 113 countries with 85 percent voting power for the measure to be instituted.

“The IMF is urging our members to complete the necessary steps as expeditiously as possible. The G20 has urged that progress be made by the time of our annual meeting in Tokyo, so we are pressing for that also,” said IMF spokesman Gerry Rice.
When the reforms are approved, the ten largest members of the Fund will consist of the United States, Japan, the four largest European economies (France, Germany, Italy, and the United Kingdom) and Brazil, China, India, and the Russian Federation.
“All the BRIC countries will be amongst our top ten shareholders once this 2010 governance and voice reform is approved,” Rice said.

Rice also answered questions about the preliminary conclusions of the IMF’s financial sector assessment of Spain. While commentators have floated a proposal for a ‘bad bank’ to take non-performing loans off the banks’ balance sheets, Rice said that different approaches can be taken.

“What is needed is a comprehensive diagnosis. It’s critical to do the due diligence of these banks’ assets before taking a final decision on this approach. In the meantime, the banks should be urged to clear as much as possible off their balance sheets,” Rice said.