New model of quota distribution attend to the Brazilian interests, states the rappporteur

The Committee on Foreign Relations and National Defense approved on Wednesday (26) the Message 563/09 that submits to the Congress changes in the constitutive agreement of the International Monetary Fund (MIF).

The text refers to the expansion of the finance and investment capacity of FMI and the quota distribution and the voting power of countries that integrates the fund. The changes were approved by the Council of Governors of the fund in the first semester of this year and conducted by the Executive Branch to analysis by the representatives.

Larger Income
The message received favorable opinion of the rapporteur, deputy Maurício Rands (PT-PE) As he explained, the changes related to the finance model of FMI have the goal of increasing the income of the fund, which has demonstrate as insufficient to cover the maintenance costs of the agency.

Currently, the FMI income is based on interests received through loans. It happens that these operations have been declining in recent years.

“With the purpose of grant more sustainability to the resources of the fund, one of the motions proposed consists in the selling authorization of 403 tons of gold, bought after 1973. The income obtained with the alienation of the metal should be transferred to the Investment account of FMI”, clarified Rands.

Quota and votes
Paradoxically, the changes relating to the quota distribution try to represent more rightly the current situation of countries in the global economy. The number of votes of each integrant State of FMI is proportional to its part-quota, fixed according to its economic weight in the world.

“From 5 to 5 years, the FMI promotes changes in its part-quota calculation criteria.” By current rules, Brazil has a nominal quota of 3,036.1 millions of Special Rights of Draw (DES), which corresponds to 1.420% of the total quota. With the formula proposed by the changes under examination, the nominal Brazilian quota will go to 4,250.4 millions of DES, equivalent to 1.783% of the total quota. As consequence, the vote power of Brazil will change of 1.402% to 1.715%, says Rands.

The adoption of a new model of quota distribution, the rapporteur said, attend to Brazilian interests to participate in a more effective way in the main multilateral forum.

Processing
The Committee of Foreign Affairs changed the message to a Proposal to Legislative Decree that will be analyzed by the Finance and Tributation Committee and the Constitution, Justice and Citizenship Committee. The text will also be voted in the Floor.

Reporting – Noéli Nobre
Edition – Wilson Silveira
Translation - Grupo Solucion-SP Language/Edgar Casadei