Ottawa, July 8, 2009
2009-070
The Honourable Jim Flaherty, Minister of Finance, today announced his signing, along with International Monetary Fund Managing Director Dominique Strauss-Kahn, of a US$10 billion borrowing agreement between Canada and the International Monetary Fund, the final step in providing the Fund with additional temporary resources for member countries requiring balance of payments assistance during the economic crisis.
"At the London summit in April, G20 leaders pledged to strengthen the international financial institutions vulnerable nations have relied on during this global turmoil," said Minister Flaherty. "Canada joined other G20 countries at that summit in committing additional IMF loan resources to ensure emerging markets and developing countries have access to the capital they need, and I am very pleased that this financial contribution by Canada is now available."
Minister Flaherty also confirmed Canada's formal ratification of amendments to the IMF's Articles of Agreement, endorsed by the membership in 2008. The "quota and voice" amendments are designed to better represent developing countries and more accurately reflect their weights in the global economy. The amendments will come into effect once three-fifths of IMF countries representing 85 per cent of the Fund's total voting power ratify them.
"The current economic and financial turmoil clearly demonstrates that international institutions must become more effective and better represent all members of the global economy—the world as it is, not as it once was," said Minister Flaherty. "An IMF that better reflects the international economy of the 21st century has long been a priority for our Government, and Canada has played a leading role in spearheading reforms to this vital organization, including taking one of the largest voting share cuts of any country. The world today needs a stronger IMF more than ever, and Canada is proud to help make that happen."
For further information, media may contact:
Chisholm Pothier
Press Secretary
Office of the Minister of Finance
613-996-7861
Jack Aubry
Media Relations
Department of Finance
613-996-8080
