Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Major changes in store for IMF



ATLANTA (CNN) -- Officials at the Group of 20 nations summit in South Korea have agreed on substantial changes for the International Monetary Fund, according to IMF Managing Director, Dominique Strauss-Kahn. If approved, the historic reforms would give developing nations a stronger voice within the institution.

Strauss-Kahn detailed the proposed changes at a news conference in Gyeongjiu Saturday. He said G-20 ministers want to see changes in the way member-countries for the IMF board are chosen. That means using a more realistic formula to assess the economic size of member countries.

"The ten biggest members of the Fund ... will be those who deserve to be the biggest members," he said.

Strauss-Kahn went on to said that, under the current system, "The membership and quota of the membership are not really representing the importance and weight of the countries in the global economy."

Major changes are in store for the make-up of the IMF board. Strauss-Kahn says ministers would like the entire board to be elected. Currently, five members of the 10-member Board are appointed and five are elected.

Also, 5 to 6 percent of board voting rights will be shifted to "dynamic, emerging economies," he said. Two board seats will be relinquished by Europe and given to emerging countries.

Ministers also agreed to create a financial safety net to counter the whims of global economic fluctuations.

Strauss-Kahn said the proposed changes have to be approved by the IMF itself. He's hopeful that the process will be completed by the end of next year. To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.36%3.43%
15 yr fixed2.65%2.69%
5/1 ARM2.87%2.93%
30 yr refi3.40%3.46%
15 yr refi2.69%2.73%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 18,432.24 -24.11 -0.13%
Nasdaq 5,162.13 7.15 0.14%
S&P 500 2,173.60 3.54 0.16%
Treasuries 1.46 -0.05 -3.51%
Data as of 3:16am ET
Company Price Change % Change
KeyCorp 11.70 0.05 0.43%
Bank of America Corp... 14.49 -0.19 -1.29%
Ford Motor Co 12.66 -0.05 -0.39%
General Electric Co 31.14 -0.11 -0.35%
Chesapeake Energy Co... 5.42 0.23 4.43%
Data as of Jul 29
Sponsors

Sections

For the first time ever, Amazon and Facebook are more valuable than Berkshire Hathaway, the storied company run by legendary investor Warren Buffett. More

Venezuela's government issues a decree recently that makes it possible to force workers to work in the country's fields amid food shortages. More

Sara Mauskopf started Winnie to help parents find everything from parks to family-friendly restaurants. More

It's about to get harder for some luxury all-cash home buyers to hide their identity from the U.S. government. More