Russia will propose reforming the international monetary and financial system at the Group of 20 London summit next month, the Kremlin said Monday.
"We call for a reform of the international monetary and financial system to enhance its stability and eliminate global economic disproportions (or to reduce the risk of their emergence)," the Kremlin said in a proposal posted on its website.
The proposal suggested international organizations, such as the International Monetary Fund (IMF), study the feasibility of enlarging the list of reserve currencies and introducing a supra-national reserve currency.
Russia will also propose discussions on the elaboration of harmonized rules of "clearing" transborder debts so as to counter financial protectionism, it said.
In order to overcome the current crisis, Russia believes that, in the long term, the IMF needs to have sufficient funds to fulfill its creditor's functions and develop new credit facilities that could assist countries facing financial problems.
In the short term, the proposal suggested the IMF redistribute quotas and voice in favor of emerging economies and developing countries. It also suggested the establishment of regional funds and mechanisms to help some countries in coping with the current crisis.
Russia also urges the enlargement of the membership of the Financial Stability Forum (FSF) before the G20 London summit slated for April 2, so as to enhance the influence of the emerging economies in the forum.
Russia will propose transferring some functions, such as the monitoring and establishment of a crisis early warning system and its role as "the global lender of last resort" and "the issuer of a global reserve currency," from the IMF to other international organizations.
(Xinhua News Agency March 16, 2009)