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Wednesday, June 17, 2015

BRICSPOST: IMF Delays 2010 Reform Package Once Again

Here we have another situation where deadlines don't really mean much. We have followed this story over a year now. The IMF has issued so many "deadlines" on this issue that I honestly don't recall them all. 


Last year the IMF said they would move to a "Plan B" if the reforms were not passed by the US Congress by Dec 2014. When that deadline passed, they said the new deadline was June 2015. Now the BRICSPOST is reporting that deadline will not be met either and has been moved to December 2015. Below are some quotes from the BRICSPOST article.

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"As the BRICS countries prepare to launch new financial institutions like the $100 billion BRICS Bank, the China-led Asia Infrastructure Investment Bank, and a $100 billion BRICS currency reserve fund, the IMF has once again delayed voting reforms to give emerging countries greater say."

A statement from the International Monetary Fund on Friday said the board has postponed the discussion on how to move forward without Washington.
The board will now take stock of the situation in September.
“The Executive Board has concluded that more time is needed to build the necessary consensus among the membership to complete its work on interim steps. The Executive Board reiterates its deep disappointment with the continued delay in the effectiveness of the 2010 Reforms, and urges the United States to ratify them as soon as possible,” the IMF statement read.
“The Report indicates that, if the 2010 Reforms are not ratified by September 15, 2015, the Executive Board will consider prior to end-September which interim solution to pursue and will, building on its ongoing discussions, complete its work on steps that represent meaningful progress towards the objectives of the 2010 Reforms as early as possible and no later than mid-December 2015,” it added.
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My added comments:
Based on the history of this issue, it seems like December 2016 would be more realistic new target date. Also, at this point, you wonder why they just don't start over with a new reform package. The one they are working on is nearly 5 years old now and probably out of date with current realities.

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