IMF Executive Board approves quota increase

The International Monetary Fund (IMF) Executive Board has reportedly approved a proposal to increase member countries' quotas by 50 percent.

50 PERCENT INCREASE

In a statement from the IMF, it was noted that the quota increase would boost the Fund's permanent resources and help maintain global financial stability by reducing reliance on borrowed resources.

The statement noted that the Executive Board will submit the proposal to increase the quota allocated to members by 50 percent to the Board of Governors.

IMF Managing Director Kristalina Georgieva stated in her remarks on the matter that the quota increase "will help preserve a strong, quota-based, and adequately resourced IMF."

TO BE APPROVED ON DECEMBER 15

Georgieva emphasized that an IMF with adequate resources is necessary to maintain global financial stability and to respond to the potential needs of member countries in a world prone to uncertainties and shocks.

For the proposal to be implemented, it must be approved in a vote to be held by the Board of Governors, which includes representatives from 190 member countries, on December 15.

Quotas form the building blocks of the IMF's financial and governance structure. A member country's quota generally reflects that country's relative position in the global economy. Quotas are denominated in Special Drawing Rights (SDR), the IMF's unit of account. The IMF reviews quotas at least every 5 years.