China 'deeply disappointed' over US snub of IMF reform

(MENAFN- AFP) Beijing said Friday it was "deeply disappointed" that Washington refused to back plans to reform the International Monetary Fund which would give emerging economies such as China a greater say in the institution.

The US Congress earlier this week failed to ratify a new set of crucial governance and funding measures contained in the 2010 reform plan, forcing the IMF board to explore "alternative options".

The reforms to the Fund's membership quota system -- essentially its shareholding -- would both strengthen the global crisis lender's funding and also give countries such as China and Russia greater say in its development.

"China is deeply disappointed by the US parliament's failure to make the IMF 2010 funding and governance reform spending legislation," foreign ministry spokesman Hong Lei said at a regular briefing in Beijing.

"Implementing the 2010 funding and governance reform is crucial for maintaining the credibility, effectiveness and legality of the IMF."

China will continue to urge Washington to back the plan, the spokesman said.

The IMF had held out hopes that the reforms, backed by the White House, would be accepted in the huge budget bill that was under discussion this week.

But the bill that emerged from tough negotiations between Democrats and Republicans late Tuesday night excluded the reforms.