China Supports IMF Funding Increase, Bank Governor Zhou Says
China supports boosting funding for the International Monetary Fund while stressing that the Washington-based lender must continue implementing reforms as a condition for specific cash commitments.
“We are supportive of international efforts to increase the lending capacity of the IMF,” central bank Governor Zhou Xiaochuan said in a statement in Washington, where he was attending the spring meetings of the institution. China “would like to emphasize that increase of quota resources is an integral part of increase of the Fund resources,” Zhou added.
Governments have committed more than $430 billion in fresh money to the IMF to help it protect the world economy against deepening debt turmoil in Europe. While countries from the U.K. to Australia pledged money, emerging markets including China and Brazil held back details of their commitments as they tied them to securing a bigger say within the fund. A 2010 plan to reduce the voting power of rich nations, or so-called quotas, has yet to be ratified.
Zhou welcomes Europe’s efforts to strengthen its firewall against the region’s debt crisis, saying it’s a “positive step” in stabilizing financial markets.
On the domestic economy, Zhou said China’s growth outlook “remains positive” after the world’s second-biggest economy expanded 8.1 percent in the first quarter.
While “near-term” inflation pressure have “moderated,” policy makers remain “vigilant” amid “ample global liquidity,” he said.
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