Lagarde warns of weakening the credibility of the International Monetary Fund

Lima: Director of the International Monetary Fund Christine Lagarde warned Friday of weakening the credibility of the International Monetary Fund and the representation of the emerging countries after disabling the reforms relating to the governance of the fund because of the US veto. Start and stop the application of these reforms, which provides double the resources of the Permanent Fund (quota countries) and re-distribution of contributions to the ratification of the US Congress, which postponed it for three years. Lagarde said in Lima, where the General Assembly will hold Monetary Fund and the World Bank, "It's a question the credibility and representative institution in particular about the countries that do not get a full representation." China has the second economic power in the world is currently less than 4% of the voting rights in the Fund's Board and its share slightly higher than Italy, although the size of the Italian economy is five times less than China's economy. Lagarde said "I hope that this matter is taken seriously and that US authorities are aware of the need to strengthen the contribution Foundation in its creation." The Obama administration is seeking to ratify the reforms adopted in 2010, but they collide with opposition Republicans dominate the Congress. He said US Treasury Secretary Jacob if Thursday: "If reforms are not implemented, the consequences for the United States and the international community will be very large." Lagarde said she is open to the idea of ​​extending its mandate at the head of the IMF reforms and disabled does not affect the "ability to manage" the organization .