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| (Kristalina Georgieva) |
The Executive Board of the International Monetary Fund (IMF) has put forth a proposal for a substantial 50% increase in quotas allotted to member countries, encompassing Ghana, proportionate to their existing quotas. This proposal is subject to the forthcoming approval of the Board of Governors.
The recommendation aligns with directives from the International Monetary and Financial Committee (IMFC), as articulated during the 2023 Annual Meetings. The IMF emphasizes that such a quota augmentation would play a pivotal role in fortifying global financial stability, augmenting the institution’s permanent resources, and diminishing its reliance on borrowed resources.
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The envisaged quota expansion is earmarked to precipitate a reduction in borrowed resources, spanning Bilateral Borrowing Agreements and New Arrangements to Borrow (NAB), with the aim of preserving the IMF’s current lending capacity. This significant strategic move underscores the IMF’s commitment to securing a robust, quota-based, and adequately resourced institution at the core of the Global Financial Safety Net.
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Following the decision of the Executive Board, IMF Managing Director Kristalina Georgieva emphasized the crucial relevance of a well-resourced IMF in preserving global financial stability and responding effectively to the potential exigencies of a volatile and uncertain global milieu.
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The proposal also encompasses an imperative to effectuate quota share realignment to more accurately reflect members’ relative positions within the global economy while safeguarding the quota shares of the most economically challenged members. Concurrently, a call has been made on the Executive Board to initiate the development of potential approaches, by June 2025, as a guide for a subsequent quota realignment. This includes contemplation of a new quota formula under the 17th General Review of Quotas.
Addressing the context of the proposal amid the intricacies of the global economy and the IMF’s diverse membership, Kristalina Georgieva expressed hope for broad consensus and collaboration among members, aiming to advance a quota realignment under the 17th Review.
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Notably, the Executive Board has called for a vote on this pivotal proposal by December 15, 2023, to be carried out by the Board of Governors. Approval necessitates an 85% majority of the total voting power, marking a significant moment in shaping the future resource allocation landscape within the IMF.
Recognizing the complexities and divergent challenges characterizing the contemporary global economic scenario, the proposal underscores the continued solidarity and collaborative resolve among the IMF members in fostering confidence and support for cooperative strategies, despite the prevailing environment of growing fragmentation.
This proactive proposal holds the potential to recalibrate and fortify the IMF's capacity to effectively bolster its membership in navigating the multifaceted terrains of a challenging global economic landscape, thereby underscoring the enduring significance of concerted international cooperation and solidarity.
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