The International Monetary Fund (IMF) announced that the Executive Board is recommending to the Board of Governors a 50 percent quota increase, distributed among members based on their existing quotas. This proposed quota increase is aimed at fortifying global financial stability and augmenting the IMF's enduring resources, according to a press release by the IMF.
The IMF outlined that the Executive Board emphasized the need for an urgent realignment of quota shares to represent members' positions in the global economy, protect the poorest members, and diminish the need for borrowing, said IMF in a press release.
"Concluding the 16 th Review with a quota increase will help preserve a strong, quota-based and adequately resourced IMF at the center of the Global Financial Safety Net. An adequately resourced IMF is essential to safeguard global financial stability and respond to members’ potential needs in an uncertain and shock-prone world," said IMF Managing Director Kristalina Georgieva after the Executive Board’s decision.
Quotas constitute foundational elements of IMF's financial and governance framework, reflecting a member country's relative standing in the global economy. The Special Drawing Rights (SDRs), which are denominated by quotas serve as units of account establishing maximum financial commitment from each member towards IMF; they influence voting power in decisions and govern loan amounts a member can access from IMF stated on its Quota information website.
“The proposed quota increase comes at a complex time for the global economy and the IMF’s membership. In spirit of international cooperation, I am hopeful this proposal will garner broadest possible support from membership, then we'll make progress on a quota realignment under 17 th Review,” said Georgieva.