“The U.S. would lose its veto power on the International Monetary Fund’s executive board under a plan being considered by some emerging economies. The countries are fed up with the United States’ failure to ratify a four-year-old deal to restructure the emergency lender.
“Some members of the IMF’s steering committee indicated at a series of weekend meetings their desire to act now, underscoring the growing discontent abroad about the U.S. Congress’s delay in approving an international accord to overhaul governance at the fund.
“The IMF cannot remain paralyzed and postpone its commitments to reform,” Brazilian Finance Minister Guido Mantega said in a statement to the IMF’s steering committee urging the IMF to sidestep Congress. “Alternatives to move forward with the reforms must be found whilst the major shareholder does not solve its political problems.”
“Economists warn the IMF’s legitimacy is at stake, and they say U.S. standing abroad is being eroded.”
Read full Wall Street Journal article here.