The IMF proposed increasing quotas of participating countries by 50% to current levels
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The Executive Board of the International Monetary Fund proposed to increase the quotas (membership fees) of the organization’s member countries by 50% of their current size, reported press service IMF.
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.
“Increasing quotas will help ensure global financial stability by increasing the IMF’s permanent resources and reducing dependence on borrowed funds,” the organization believes. The proposal from the IMF Executive Committee also calls for the development by June 2025 of possible approaches to determining the further principle of quota redistribution.
Representatives of developing countries have been trying for many years to achieve a revision of the quota formula, which now depends on the size of GDP (at purchasing power parity) and a number of additional criteria, including the degree of market openness and the size of reserves. If the quota formula is revised and redistributed in accordance with countries’ GDP, the US quota will decrease from 17.43% to 14.8%, and China’s quota will increase from the current 6.4% to 14.4%.
Read more in the Kommersant article. “The IMF is ready to talk about money, but not about power”.
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