US House introduces aid bill to Ukraine excluding IMF reform

Source:Xinhua Published: 2014-3-22 11:10:54

The US House of Representatives Foreign Affairs Committee on Friday introduced a new aid bill to Ukraine that did not include the reform of the International Monetary Fund (IMF), which indicates the long- delayed reform could be postponed further.

The Republican-led House excluded the IMF reform after the Foreign Relations Committee of the Democratic-led Senate, on March 12, approved a loan assistance bill to Ukraine and ratified the reform measures. The two parties have been fighting on the issue for long.

Robert Menendez, chairman of the Senate Foreign Relations Committee, said the bill included needed reforms to the United States' participation in the IMF, which would allow the United States to leverage significant support from the IMF for Ukraine today and for similar unforeseen crises in the future.

But congressional Republicans have argued it would undermine US influence in IMF and questioned the effectiveness of the proposal.

The IMF quota and governance reform was introduced in 2010, aiming to shift some voting power from developed economies to emerging economies. It was initially pushed by the United States but have not come into effective because of the disapproval of the US congress.

Posted in: Americas

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