The U.S. refused to back a resolution to maintain the current form and composition of the International Monetary Fund’s 24-seat executive board in a bid to enable emerging nations to have a greater say.
IMF shareholders vote every two years to allow an exception to the original size of 20 seats. The fund’s board tackles issues such as loans to nations and appraisal of government policies.
The U.S.’s backing is needed to reach the 85 percent voting threshold required for the passage of the resolution.
U.S. Treasury Secretary Timothy Geithner “supports reforming the IMF Executive Board to make it better reflect the realities of today’s global economy and ensure that the representation of emerging market and developing countries is strengthened,” Treasury spokeswoman Natalie Wyeth said in an e-mailed statement.
The resolution forms part of the election process of IMF board’s executive directors due Nov. 1. Without an agreement, the number of board seats will revert to 20, IMF spokeswoman Conny Lotze said according to Bloomberg.
