US Credibility in Jeopardy Without IMF Reform - Treasury Secretary

© AP Photo / Pablo Martinez MonsivaisInternational Monetary Fund
International Monetary Fund - Sputnik International
US Treasury Secretary Jacob Lew said that the United States failure to approve the IMF quota and governance reforms would make other countries to question the country's commitment to the IMF.

The US Treasury. - Sputnik International
US Treasury Urges Congress to Pass IMF Quota Reform
MOSCOW (Sputnik) — The credibility of the United States is at risk unless Washington approves reform of the International Monetary Fund (IMF), US Treasury Secretary Jacob Lew said Tuesday.

"Our continued failure to approve the IMF quota and governance reforms is causing other countries, including some of our allies, to question our commitment to the IMF and other multilateral institutions that we worked to create and that advance important US and global economic and security interests," the Financial Times quoted Lew as saying.

"Our international credibility and influence are being threatened," he added.

Chinese currency - Sputnik International
Europe Gets ‘Foot in The Door’ in Asia by Joining AIIB

Lew's warning came as Italy, France and Germany followed UK's lead and announced on Tuesday their intention to join the China-backed Asian Infrastructure Investment Bank (AIIB) as founding members, despite Washington's concerns that the bank is a potential competitor of the US-based IMF and World Bank.

AIIB is an international financial institution proposed by China. The purpose of the multilateral development bank is to provide finance to infrastructure projects in the Asia-Pacific region.

The bill establishing the bank was signed by 21 countries in October 2014, including Singapore, Malaysia and Kazakhstan among others.

Earlier in the day, Luxembourg's Finance Ministry confirmed to Sputnik news agency the country's bid to become a member of the Asian Infrastructure Investment Bank.

The new investment bank will be headquartered in Beijing. March 31 is the deadline for accepting founder-members.

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