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 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 the 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 the foundational elements of the International Monetary Fund's (IMF) financial and governance framework, reflecting a member country's relative standing in the global economy. Denominated in Special Drawing Rights (SDRs), the IMF's unit of account establishes the maximum financial commitment a member is obligated to contribute to the IMF, determines a member's allocation of SDRs, influences voting power in IMF decisions, and governs the maximum loan amount a member can access from the IMF according to information provided by IMF Quota information website.
“The proposed quota increase comes at a complex time for the global economy and the IMF’s membership. In the spirit of international cooperation, I am hopeful this proposal will garner the broadest possible support from our membership. We will then make progress on a quota realignment under our 17 th Review,” said IMF Managing Director Kristalina Georgieva.