U.S. Treasury Secretary Janet Yellen holds a roundtable with finance ministers from borrower and shareholder countries at the International Monetary Fund Building, in Washington
U.S. Treasury Secretary Janet Yellen holds a roundtable with finance ministers from borrower and shareholder countries to discuss "ways to maintain momentum to evolve the multilateral development banks to better meet current challenges" at the International Monetary Fund Building, in Washington, D. Reuters

The International Monetary Fund's steering committee on Friday said would accelerate its discussions on quota reforms at the global lender with an eye to making "considerable progress" by their next meeting in October.

Spanish Economy Minister Nadia Calvino, who chairs the International Monetary and Financial Committee (IMFC), said members were committed to revisiting the adequacy of the IMF's quotas for shareholders and completing a review by Dec. 15.

"In this context, we support at least maintaining the IMF's current resource envelope," Calvino said in a summary of the committee's work. "We also welcome the fourth progress report to the Board of Governors and will accelerate our discussions to achieve considerable progress by the time of our next meeting toward the conclusion of the review as part of a package approach."

U.S. Treasury Secretary Janet Yellen on Friday said the fund has adequate resources to deal with global financing challenges but needs to follow through with "fair and simple" shareholding reforms that reflect the economic size of its member countries.

In a statement to the IMFC, Yellen also said she wanted the World Bank to implement further reforms to scale up lending for climate and other global needs on a rolling basis ahead of the IMF and World Bank's annual meetings in October in Marrakech, Morocco.

"With regard to IMF resources, I continue to believe that overall resources remain adequate," Yellen said. "At the same time, the IMF needs to follow through on its commitment to a new quota formula that is both fair and simple and primarily reflects the economic size of its member countries."

She said the IMF needed to remain a quota-based institution so that it has a "consistent, predictable level of resources" that keeps it at the center of the global financial safety net.

The IMF has delayed a long-awaited review of its quota funding structure until as late as December 2023 amid past U.S. opposition to changes that would give a bigger voice to China and other fast-growing emerging market countries.

The last changes to the IMF's shareholding structure were made in 2010. The United States, which holds an effective veto over major IMF structural decisions, is the largest shareholder, with 16.5% of the Fund's voting power, followed by Japan at 6.14%, China at 6.08% and Germany at 5.31%.

Yellen said the Biden administration "continues to work with our Congress" on its request to lend up to $21 billion to the IMF's trust funds to channel Special Drawing Rights reserves to needier countries.

The U.S. Treasury chief also said that despite difficult global economic conditions, she was optimistic about the steps that policymakers have taken to overcome challenges including pandemic recovery, spillovers from Russia's war in Ukraine and the battle against inflation.

"The U.S. banking system is far more resilient and has a stronger foundation than before the Global Financial Crisis, and we will continue to take steps so that our financial system remains strong," Yellen said, adding that she was working with the IMF, the Financial Stability Board and other counterparts to monitor financial stability disruptions and prevent spillovers.