The IMF decided to increase credit resources
It was reported that the member countries of the International Monetary Fund (IMF) agreed to carry out a “significant increase” in the fund’s credit resources before the end of the year.
The president of the IMF, Kristalina Georgieva, and the Spanish Minister of Economy and Digitalization, Nadia Calviño, who chairs the International Monetary and Financial Committee (IMFC), offered a press conference within the framework of the Annual Meetings of the IMF and the World Bank in Marrakech, Morocco.
Nadia Calviño said at the press conference that a basic agreement was reached among members to increase financing levels through increasing quotas in the IMF.
Calviño, who did not provide information on the conditions of the quota increase, emphasized that the increase would allow the IMF to maintain global financial stability.
“It will make the IMF stronger”
IMF President Kristalina Georgieva also stated that the Israeli-Palestinian conflict is another source of uncertainty for the global economy and said that it is too early to measure the impact of the conflict on the global economy.
After increasing quotas, they agreed that changing the voting rights of IMF members would be the “next step”, Georgieva said they agreed there would be a clear plan for this.
Georgieva emphasized that the increase in quotas “will make the IMF financially strong to take measures in case of facing another economic shock” such as the Covid-19 epidemic.
ADDITIONAL LOAN OF 3 BILLION DOLLARS FOR POOR COUNTRIES
In her written statement, IMF President Kristalina Georgieva stated that the goal of increasing the Poverty Reduction and Growth Trust Fund (FLT) by $3 billion was achieved.
Georgieva stated that PRGT loans used by low-income countries on privileged terms have quintupled since the Covid-19 outbreak, reaching $30 billion, Georgieva stated that approximately 30 countries use the loans.
IMF QUOTAS
IMF quotas, which are adjusted based on the size of a country’s economy, determine how much financing a country must provide to the IMF, its voting power, and the maximum loan amount it can receive.
Countries such as China, India and Brazil, whose economies are growing significantly faster than Western developed countries, have long called for quotas to be readjusted to reflect their growing economic weight.
While the United States had the largest share of IMF quotas with approximately 17.43 percent, it is worth noting that China’s share, which constitutes approximately 18 percent of global economic output, was only 6.40 percent. hundred.
With an agreement on quota increases, voting rights are expected to be updated in the future to better reflect the economic weight of IMF members. (AA)