IMF to boost capital

IMF to boost capital

TOKYO (AFP): The major contributor nations to the International Monetary Fund (IMF) have started to finalize plans to boost the fund's capital by 40 percent, a Japanese newspaper reported Tuesday.

Quoting unidentified sources in Washington, the Nihon Keizai Shimbun said the final preparations begun on Monday would result in Japan becoming the second largest contributor to the IMF after the United States.

The contributions of other East Asian members such as South Korea are expected to rise sharply due to their rapid economic growth, the report said.

Details of the plan will be discussed at a meeting of Group of Seven (G-7) finance ministers and central bank governors in Hong Kong on Saturday ahead of next week's annual meetings of the IMF and the World Bank, it added.

Under a new formula for calculating capital contributions from member countries, Japan will contribute more to the IMF than Germany, the report said. The United States currently contributes 18.25 percent of the IMF's capital with Japan and Germany providing in 5.67 percent each.