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The International Monetary Fund
(IMF) Executive Board has approved a proposal to increase the quota of its
members by 50 per cent.
A statement from the IMF said the
proposal will be presented to the Board of Governors for final approval.
The quota increase is the 16th
General Review of Quotas (16th Review) of the IMF. It follows the guidance from
the International Monetary and Financial Committee (IMFC) at the 2023 Annual
Meetings held in Marrakech, Morocco.
The quota increase is designed to
safeguard global financial stability by enhancing the IMF's permanent resources
and reducing reliance on borrowed resources. It will also strengthen the
quota-based nature of the Fund and ensure the primary role of quotas in Fund
resources.
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 tasked
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 17th General Review of Quotas.
IMF Managing Director Kristalina
Georgieva said the proposed quota increase comes at a complex time for the global
economy and the IMF's membership. She expressed hope that the proposal will
garner the broadest possible support from the membership, and that progress
will be made on a quota realignment under the 17th Review.
The Executive Board has requested
that the Board of Governors vote on the proposal by December 15, 2023.
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