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.