Via IMF (Den Internationale Valutafond)

IMF Executive Board Approves Decisions to Implement a Package on Resources and Governance Reform







January 17, 2020















On January 16, 2020, the IMF Executive Board approved a doubling of the New
Arrangements to Borrow (NAB) and proposed to the Board of Governors a
resolution concluding the 15th General Review of Quotas (15 th Review) and providing guidance on the 16th General
Review of Quotas (16th Review). These are important decisions
toward implementing the package on IMF resources and governance reform

endorsed by the IMF membership

during the 2019 Annual Meetings. On October 18, 2019, the IMFC reaffirmed
its commitment to a strong, quota-based, and adequately resourced IMF to
preserve its role at the center of the global financial safety net and
looked forward to consideration of a doubling of the New Arrangements to
Borrow (NAB) and a further temporary round of bilateral borrowing beyond
2020. It also called on the Executive Board to complete its work on the 15 th Review and committed to continuing the process of IMF
governance reform under the 16th Review.

“These decisions by the IMF’s Executive Board represent a milestone in
implementing the package of actions on resources and governance reform
that were endorsed by the membership at the Annual Meetings. They will
help secure the Fund’s US$1 trillion in lending resources and its
crucial role at the center of the global financial safety net,” IMF
Managing Director Kristalina Georgieva said after the Executive Board’s
decisions.

READ ALSO  På tide med en national strategi for afskaffelse af hjemløshed

“This is another strong signal of the membership’s commitment to ensure
that the IMF will continue to have sufficient resources to provide full
confidence that it can adequately support its membership, and that
governance reform will continue under the 16th General Review of Quotas,”
she said.

Modifications in the NAB

The Executive Board approved the doubling of the NAB, from the current SDR
182.4 billion (US$ 252.1 billion) to SDR 364.7 billion (US$ 504.2 billion),
for a new NAB period from 2021 to 2025, and a few additional amendments to
the NAB decision. The changes will become effective after NAB participants
have secured the necessary domestic approvals and provided the required
consents, with the targeted effectiveness date of January 1, 2021.


15th and 16th General Reviews of Quotas

As the support for a quota increase under the 15th Review fell
short of the required majority, the Executive Board recommended to the
Board of Governors a resolution concluding the 15th Review
without an increase in quotas and providing guidance on the 16th
Review in line with the

October 2019 IMFC Communiqué

:


“Beyond the 15th Review, we are committed to revisiting the
adequacy of quotas and continuing the process of IMF governance reform
under the 16th General Review of Quotas, including a new
quota formula as a guide, with the Review to be extended from 2020 to
no later than December 15, 2023. In this context, we remain committed
to ensuring the primary role of quotas in IMF resources. Any adjustment
in quota shares would be expected to result in increases in the quota
shares of dynamic economies in line with their relative positions in
the world economy and hence likely in the share of emerging market and
developing countries as a whole, while protecting the voice and
representation of the poorest members.”

 

READ ALSO  Lidt flere konkurser i november

Related links:


The International Monetary and Financial Committee


Factsheet – Where the IMF Gets Its Money


Factsheet – IMF Quotas


IMF Communications Department
MEDIA RELATIONS

PRESS OFFICER: Wafa Amr

Phone: +1 202 623-7100Email: MEDIA@IMF.org

@IMFSpokesperson