The International Monetary and Financial Committee (IMFC) of the Board of governors of the International Monetary Fund (IMF) released a communique after a one-day meeting here Sunday, calling for a series of IMF reforms.

The committee, a 24-member steering group, represents the full 184-strong membership of the 61-year-old IMF. In the communique, the committee stressed the importance of IMF quota and voice reforms.

The Executive Board has submitted a comprehensive two-year program of quota and voice reforms in a draft resolution to the Board of Governors. If being approved on the plenary meeting next week, the IMF will initiate an integrated set of reforms, to be completed no later than by 2008.

Starting with initial quota increases for China, South Korea, Mexico and Turkey, this package of reforms, when implemented, would make significant progress in realigning quota shares with members' relative positions in the world economy, and equally important, in enhancing the participation and voice of low-income countries in the IMF, said the communique.

The committee, in its communique, urged the Executive Board to work constructively on all elements of the reforms so as to garner the broadest possible support.

The communique also evaluated the world economy, saying that growth is expected to remain robust in the world in 2007, while admitting downside risks, such as inflationary pressures, a slowdown in consumption in some areas and spread of protectionism.

The committee agreed that in the period ahead, the IMF should focus on supporting its members in promoting policies for reducing global imbalances while sustaining global growth, addressing the impact of high oil prices, managing the likely transition to less generous liquidity conditions and ensuring medium-term fiscal sustainability and financial stability.

The communique also said that the committee welcomes the progress made in the reform of the IMF surveillance framework and the steps to put great focus on financial and capital market issues in the IMF's work.

The communique announced that the next meeting of the IMFC will be held in Washington, D.C. of the Untied States on April 14, 2007.

At its next meeting, the committee will consider further work on ways to enhance collaboration and clarify the division of responsibilities and accountabilities between the IMF and the World Bank, said the communique. Following Sunday's IMFC meeting, the World Bank's policy-setting body, the Development Committee, will hold meeting on Monday.

Then, on Tuesday and Wednesday, the two institutions will hold a joint plenary session for their full membership.

Source: Xinhua