Published by Global Banking & Finance Review®
Posted on July 6, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleBRICS finance ministers propose IMF reforms for voting rights, aiming to better represent developing nations and end European management tradition.
By Lisandra Paraguassu
RIO DE JANEIRO (Reuters) -Finance ministers from the BRICS group of developing nations called on Saturday for reform of the International Monetary Fund, including a new distribution of voting rights and an end to the tradition of European management at the helm.
The joint statement by the group's finance ministers marks the first time the BRICS countries have agreed on a unified position on the proposed reforms. They agreed to back the shared proposal at an IMF review meeting coming up in December, which will discuss changes to a quota system that defines contributions and voting rights.
"Quota realignment should reflect members' relative positions in the global economy, while protecting the quota shares of the poorest members," the ministers wrote in their statement after meetings in Rio de Janeiro, adding that the new formula should increase quotas for developing countries.
The BRICS ministers called for a new formula weighted by economic output and purchasing power, considering the relative value of currencies, which should better represent low-income countries, said a Brazilian official who followed negotiations.
The ministerial meetings came ahead of a leaders summit in Rio for the bloc that expanded last year beyond Brazil, Russia, India, China and South Africa to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates.
That has added diplomatic clout to the group, which aims to speak for developing nations in the Global South, urging reforms of institutions long dominated by traditional Western powers.
"With full respect to a merit-based selection process, regional representation must be enhanced for the IMF management, overcoming the anachronistic post-World War II gentlemen's agreement that is unfit for the current world order," the finance ministers wrote.
Their statement also confirmed discussions to set up a new guarantee mechanism backed by the NDB, a multilateral bank funded by the BRICS, which aims to lower financing costs and boost investment in developing economies, as Reuters first reported on Thursday.
(Reporting by Lisandra Paraguassu; Editing by Manuela Andreoni, Brad Haynes and David Gregorio)
The BRICS finance ministers called for reforms of the IMF, including a new distribution of voting rights that reflects members' positions in the global economy.
They proposed a new formula for quota realignment that considers economic output and purchasing power, aiming to better represent low-income countries.
The leaders summit is significant as it follows the agreement on a unified proposal for IMF reforms and aims to enhance the diplomatic clout of the BRICS group.
The NDB, or New Development Bank, is a multilateral bank funded by BRICS countries, and it aims to set up a new guarantee mechanism to lower financing costs and boost investment.
The ministers want to overcome the post-World War II gentlemen's agreement that has historically influenced the selection process for IMF management.
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