The IMF approved an increase in quotas by 50%, to $960 billion – Kommersant
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The Board of Governors of the International Monetary Fund (IMF) approved an increase of 50% in the size of quotas for members of the organization, or $320 billion, to $960 billion. The resolution was supported by governors representing 92.86% of the votes with a minimum threshold of 85%.
The IMF subscription quota is a membership fee paid by a member country of the organization. The size of quotas depends on the country’s economy and its gold and foreign exchange reserves. The size of the quota determines the country’s access to the fund’s financial resources and voting rights.
“This decision reduces the Fund’s dependence on borrowed resources, restores the primary role of quotas in our lending capacity, and strengthens the IMF’s role at the center of the global financial safety net. <...> “I look forward to the timely implementation by Member States of this important agreement,” the statement reads. statement Managing Director of the IMF Kristalina Georgieva.
Increasing quotas will not change the total level of funds that the IMF can allocate for loans, which is about $1 trillion. The decision will allow for the redistribution of funds.
Representatives of developing countries have been trying for many years to achieve a revision of the quota formula. Their economies have grown significantly in recent years, but quotas and voting rights in the IMF have not increased. The new revision does not address the redistribution of voting rights, which would reduce US political influence and increase China’s influence.
Read more in the Kommersant article. “The IMF is ready to talk about money, but not about power”.
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