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Thu 17 Sep 2009 01:08 PM

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World Bank talks to GCC on capital raise - paper

Increases would mean more voting rights in the World Bank for Gulf Arab states.

The World Bank is in talks with Gulf Arab countries on raising their capital in the bank, with an announcement on the size of any increases due in October, a Qatari newspaper reported, citing a senior World Bank official.

Such increases in capital would automatically mean more voting rights in the organisation, Senior Vice President and World Bank Group General Counsel Anne-Marie Leroy told Qatari daily Al-Sharq.

The World Bank is also talking to other countries, including Brazil, China and India, Leroy said.

Some of the world's biggest emerging economies are demanding a stronger voice at the World Bank and its sister organisation, the International Monetary Fund.

Earlier this month, Brazil, Russia, India and China - known as the "BRIC" economies -- proposed a 7 percent shift in IMF quotas in favour of developing countries, more than the 5 percent that sources have told Reuters the United States is proposing.

Although the United States and Europe generally agree that these countries deserve greater IMF representation, there is no consensus on how to accomplish that because countries are unwilling to see their own share of power diluted. (Reuters)

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