The International Monetary Fund‘s executive board on Tuesday approved a proposal for a 50% increase in quota resources to be contributed by member countries in proportion to their current IMF shareholdings.
The proposal would largely follow a US-backed plan that would enhance IMF lending resourcesbut delay any IMF shareholding increases for China, India, Brazil, and other fast-growing emerging market economies.The IMF, however, said the board requested an accelerated timetable for developing options to guide the realignment of the Fund’s quota formula by June 2025.
The IMF said the 50% increase in quota funding – equivalent to about $314 billion – would not increase its overall lending firepower of about $1 trillion, but would shift the composition to more permanent resources. Currently, the Fund relies on bilateral borrowing arrangements and pledges to a crisis lending fund called the New Arrangements to Borrow for nearly 60% of its lending resources. It said these would be reduced to maintain the Fund’s current overall lending capacity.
The quota increase “will help preserve a strong, quota-based and adequately resourced IMF at the centre of the Global Financial Safety Net”, IMF MD Kristalina Georgieva said in a statement.
The proposal would largely follow a US-backed plan that would enhance IMF lending resourcesbut delay any IMF shareholding increases for China, India, Brazil, and other fast-growing emerging market economies.The IMF, however, said the board requested an accelerated timetable for developing options to guide the realignment of the Fund’s quota formula by June 2025.
The IMF said the 50% increase in quota funding – equivalent to about $314 billion – would not increase its overall lending firepower of about $1 trillion, but would shift the composition to more permanent resources. Currently, the Fund relies on bilateral borrowing arrangements and pledges to a crisis lending fund called the New Arrangements to Borrow for nearly 60% of its lending resources. It said these would be reduced to maintain the Fund’s current overall lending capacity.
The quota increase “will help preserve a strong, quota-based and adequately resourced IMF at the centre of the Global Financial Safety Net”, IMF MD Kristalina Georgieva said in a statement.