IMF Executive Board Approves a Proposal to Increase IMF Quotas

  • The Executive Board proposes to the Board of Governors a 50 percent quota increase allocated to members in proportion to their current quotas.
  • The quota increase would help safeguard global financial stability by enhancing the IMF’s permanent resources and reducing reliance on borrowed resources.
  • The proposal also includes a call for work to develop, by June 2025, possible approaches as a guide for further quota realignment.

Washington, DC: The Executive Board approved today a proposal to be considered by the Board of Governors to conclude the 16 th General Review of Quotas (16 th Review) with a significant increase in quotas. The proposal follows the guidance from the International Monetary and Financial Committee (IMFC) at the 2023 Annual Meetings.

The proposal is centered around an increase in quotas of 50 percent, allocated to members in proportion to their current quotas. The quota increase would enhance the IMF’s permanent resources and strengthen the quota-based nature of the Fund by reducing the reliance on borrowing and thus ensuring the primary role of quotas in Fund resources.

The proposal envisages that once quota increases are in effect, borrowed resources comprising the Bilateral Borrowing Agreements and New Arrangements to Borrow (NAB) would be reduced to maintain the Fund’s current lending capacity.

The membership has also acknowledged the urgency and importance of quota share realignment to better reflect members’ relative positions in the world economy while protecting the quota shares of the poorest members, and many members would have supported a quota realignment now, together with the proposed quota increase. Hence, another critical element of today’s proposal is a call on the Executive Board to work to develop, by June 2025, possible approaches as a guide for further quota realignment, including through a new quota formula, under the 17 th General Review of Quotas. Work to implement this guidance will begin as soon as feasible after the conclusion of the 16 th Review.

Working of IMF:

The IMF is accountable to its member country governments. At the top of the organizational structure is the Board of Governors, consisting of one governor and one alternate governor from each member country, usually the top officials from the central bank or finance ministry. The Board of Governors meets once a year at the IMF–World Bank Annual Meetings. Twenty-four of the governors serve on the International Monetary and Financial Committee, or IMFC, which advises the IMF's Executive Board.  

The day-to-day work of the IMF is overseen by its 24-member Executive Board, which represents the entire membership and is supported by IMF staff. The Managing Director is the head of the IMF staff and Chair of the Executive Board and is assisted by four Deputy Managing Directors. 

IMF

What is the IMF? - IMF


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