The IMF increased the quotas of member countries by 50 percent

The IMF statement stated that the quota increase will increase the Fund’s permanent resources and help maintain global financial stability by reducing dependence on borrowed resources.

The statement noted that the Executive Committee will present to the Assembly of Governors an increase in the quota assigned to members by 50 percent.

“WILL HELP PROTECT THE IMF”

In her statement on the issue, IMF President Kristalina Georgiva stated that the increase in quotas “will help maintain a strong, quota-based and well-resourced IMF.”

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

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

Quotas constitute the pillars of the IMF’s financial and management structure. A member country’s quota generally reflects that country’s relative position in the world economy. Quotas are expressed in Special Drawing Rights (SDR), the IMF’s unit of account. The IMF reviews quotas at least every five years. (AA)