The International Monetary Fund plans to increase the quotas distributed to governments by 50% at its next review, in order to reduce its dependence on borrowed funds and create a more sustainable financial base.
As financing needs increase, the International Monetary Fund plans to increase the quotas distributed to governments by 50% at its next review, due to take place at the end of this cycle, in June 2025. On 7 November, the IMF ’s executive board put forward a significant proposal: increasing member countries’ quotas by 50% in proportion to their current shares.
If this measure is approved by the board of governors at the general review by 15 December 2023, it will have implications for the global economy. The aim of this measure is to increase the organisation’s capital, thereby reducing its dependence on borrowed funds. As a result of this increase, the use of external lending mechanisms, such as multilateral and bilateral borrowing arrangements, will decrease. This change could lead to a more sustainable and predictable financial base for the IMF, given that equity is independent of external shocks
IMF Quotas Financing Global Economy Capital Borrowed Funds Lending Mechanisms Sustainable Predictable