Senate committee rebuffs Obama funding request for IMF vote reform

Reuters News

3/11/2013 11:05:33 PM - Reuters News

WASHINGTON (Reuters) - The Senate Appropriations Committee on Monday rebuffed a request by the Obama administration to approve a permanent increase in U.S. funding to the International Monetary Fund, part of a broader deal that would increase the voting power of emerging market economies in the global lender.

Senate Democratic and Republican aides said legislation that would avoid a government shutdown in late March did not include a provision requested by the Obama administration on IMF funding. The Republican House of Representatives rejected the request last week, which would shift about $65 billion in U.S. funds from an IMF crisis fund to more permanent resources.

U.S. congressional approval is needed to finalize the 2010 IMF reform package, which would make China the IMF's third-largest voting member after the United States and Japan. It would also increase the voting power of other large emerging economies like Brazil and India.

(Reporting by Lesley Wroughton; Editing by Eric Walsh)