income from the investment of the higher proceeds of the agreed gold sale under the new income model to expand subsidized lending to low income countries. members participating in the multilateral borrowing arrangements with the fund should have the option of earmarking a portion of their lending for assistance to low income countries. vigorous efforts to increase donor contributions to the subsidy resources should be pursued. governance governance continues to be critical to the legitimacy, credibility and effectiveness of the fund. the most crucial issue is the continuance of the process of realignment of quotas and voice. the ensuing quota review should ensure that the imf is comprehensively reformed so that it reflects the changing economic weights in the world economy and is more responsive to future challenges. emerging and developing economies should have substantially greater voice and representation in the fund. this principle was reiterated in the washington declaration of the g20 leaders and endorsed by the london summit as well. we now expect that the quota review will result in a comprehensive reform of the governance of the fund. the initiative towards internal governance reform within the fund is also relevant, although it should follow the quota and voice reform. we now have the independent evaluation office ( ieo ) report on corporate governance, the report of the trevor manuel committee, and the inputs from civil society. we expect that these inputs would be thoroughly analyzed and discussed in the executive board and appropriate recommendations for action would be made so that the imfc could become a more effective forum and the fund is also strengthened. we call for the introduction of an open, merit - based process, irrespective of nationality and geographical preferences, for the selection of the senior management of the fund. the next managing director of the imf should be selected in this manner. developments in the constituency i now turn to developments in my constituency. india the global financial crisis interrupted india ’ s growth momentum. since downside risks have materialized, the gdp growth for 2008 - 09 is now projected to turn out to be in the range of 6. 5 to 6. 7 per cent after clocking annual growth of 8. 9 per cent on an average over the preceding five years ( 2003 - 08 ). domestic demand, in the form of both private consumption and investment expenditure, has slackened although government final consumption rose on account of discretionary fiscal stimulus measures. the global crisis brought to the fore the strong interactions between funding liquidity and market conditions. both the government and the reserve bank responded to the challenge of minimising the impact

. chart 9 longer - term interest rates, the pandemic inflation gap and pepp purchase amounts ( left panel : left - hand scale : eur billions ; right - hand scale : basis points ; right panel : percentage per annum ) notes : the pandemic inflation gap is defined the difference between the pre - pandemic forecast of 1. 6 per cent and the end - of - horizon projection for each quarter. the end - of - horizon projection corresponds to the most ahead annual forecast of the eurosystem staff macroeconomic projections. the 10y risk - free rate corresponds to the tenyear ois rate. yields and rates are averaged over the quarter. the calibration of the tltro iii programme in response to the pandemic has provided significant monetary accommodation in a manner that is designed to protect credit supply. in particular, an important innovation was to set the minimum borrowing rate at 50 basis points below the average interest rate on the deposit facility. this lowered funding costs for bank - intermediated credit, even without a generalised reduction in the main traditional policy rates. the remarkable expansion in the scale of tltro iii operations, which have increased by about €2. 2 trillion during the pandemic, is visible in chart 1. ecb estimates indicate that tltro iii liquidity can be expected to boost loan volumes considerably, to the tune of four percentage points cumulatively by 2022, and also contributed to a substantial lowering of lending rates to non - financial corporations. the euro area bank lending survey confirms that tltro funding has boosted loan generation and eased credit terms and conditions ( charts 10 and 11 ). chart 10 use of tltro iii liquidity by banks ( percentages of banks over the past and next six months ) source : euro area bank lending survey ( bls ). notes : banks were asked to indicate the relevance of the different objectives, with multiple mentions possible. “ purchasing financial assets ” is the average of “ purchasing domestic sovereign bonds ” and “ purchasing other financial assets ”. “ granting loans ” refers to loans to the non - financial private sector. the last period denotes expectations indicated by banks in the october 2021 round of the bls. the latest observations are for the third quarter of 2021. chart 11 bank lending conditions and loan growth to firms and households ( left side : net percentages of banks reporting an easing ( + ) / tightening ( - ) of credit standards and an increase ( + ) / decrease (