IMF 'Plan B' on reforms could slash US power

Washington's block on crucial IMF reforms has pushed the crisis lender into discussions of other options, with one proposal potentially slashing US voting power nearly in half, AFP learnedWashington’s block on crucial IMF reforms has pushed the crisis lender into discussions of other options, with one proposal potentially slashing US voting power nearly in half, AFP learned. Talks on “Plan B” have emerged because patience has run out with the US Congress’ failure to ratify the 2010 reforms originally strongly supported by the White House. The reforms would both realign the power of members on the IMF executive board, boosting emerging countries like China and India, and double the capital resources the bank uses to support countries in financial crisis. Brazil’s executive director at the IMF, Paulo Nogueira Batista, has outlined a plan to “delink” the two components of the reforms in a way that could allow them to go ahead without requiring the US Congress to approve them.

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