Resources

Budget

In April 2025, the Executive Board approved the FY 2026 net administrative budget of $1,552 million in FY 2026 dollars, with indicative budgets for FY 2027 and FY 2028. Despite a modest structural supplement to address critical cybersecurity-related needs, overall departmental resources declined, reflecting the continued unwinding of temporary funding.

The FY 2026 gross administrative budget envelope was $1,991 million, including $296 million in external reimbursements for capacity development activities (Table 3.1). The gross budget also incorporated $73 million in IMF-financed carryforward of unused resources from prior years and $8 million in externally financed carryforward. In addition, a capital budget of $133 million was approved for use over three years to support facilities-related and IT-intensive capital projects, including cloud-based licensing costs.

The FY 2026 budget was shaped by heightened global economic uncertainty, which continued to place substantial demands on the Fund. The IMF remained central to supporting members in safeguarding macroeconomic stability at both the global and country levels, advancing policies to foster private-sector-led growth, and promoting cooperative solutions to shared economic challenges through surveillance, lending, and capacity development. The budget continued to be guided by principles of agility and discipline, supported by ongoing reprioritization and capture of efficiency gains. A management-led streamlining review further reinforced these efforts by rationalizing internal processes and outputs, with implications for both FY 2026 and expected medium-term allocations. Amidst elevated demand, the budget continues to involve difficult trade-offs.

Actual administrative expenditures in FY 2026 totaled $1,505 million, equivalent to 97 percent of the approved net budget and 97.5 percent for the general budget, excluding the Office of the Executive Directors and the Independent Evaluation Office. Capital spending in FY 2026 increased by 2.4 percent to $130 million, comprising $56 million in facilities-related direct capital spending, and $74 million for IT-intensive spending.

In terms of spending by output areas in FY 2026, direct country work continues to account for about half of total IMF spending through bilateral surveillance, financial support, and direct capacity development delivery (Figure 3.1). Multilateral surveillance, policy and analytics, and IMF governance and finances account for an additional one-third of IMF spending, with the remaining comprising activities related to corporate services and oversight offices.

In April 2026, the Executive Board authorized a net administrative budget for FY 2027 of $1,601 million ($1,559 million in FY 26 dollars), continuing to be guided by the long-standing principle of budget prudence.

A Credit Union for Countries

You can park your money and earn interest. Or take out a loan when needed, with special member pricing. Sounds like a credit union, right? In many ways, this describes the IMF, a credit union for countries, with a lending capacity of nearly $1 trillion.

Our unique funding model means that, unlike other international organizations, our members are not required to provide us with annual taxpayer-funded support. Instead, our 191 member countries make an initial investment in an ownership share, or “quota,” based broadly on their relative positions in the world economy.

This structure benefits borrowers and creditors alike. In exchange for providing resources for IMF lending, member countries receive an interest-bearing, liquid, and secure claim on the IMF. Importantly, this claim counts as part of their foreign exchange reserves.

By pooling member resources, the IMF plays a central role in the global financial safety net. We support borrower countries that are struggling to meet their international financial obligations, such as paying for imports or servicing their external debt.

Facing such a crisis, countries can seek financial support from the IMF to help soften the impact on ordinary people and gain macroeconomic breathing room to get back on their feet. And the “credit union membership” offers far lower interest rates than they would face in private capital markets.

Because a crisis in one country can cause spillovers to other countries, our lending benefits all. So, too, does our cutting-edge research, policy advice, and capacity development support. All of our services are provided under a budget that has been flat for two decades, taking into account inflation: The IMF is proud to deliver unique value to our members.

Income Model, Charges, Remuneration, Burden Sharing, and Total Comprehensive Income

Income Model

The IMF generates income primarily through its lending and investing activities (Figure 3.2). Lending income is derived from the fees and charges levied on the use of credit from the General Resources Account, including service charges and commitment fees. In addition, the use of IMF credit is subject to surcharges for loans above a certain threshold and duration, as noted in Part 2, and special charges in certain circumstances. The IMF’s income model also relies on investment income generated from assets in the Fixed-Income and Endowment Subaccounts of the IMF’s Investment Account. Given the public nature of the funds, the IMF’s investment policy includes, among other things, careful assessment of acceptable levels of risk, as well as safeguards to minimize actual or perceived conflicts of interest. The investment strategy was reviewed and approved by the Executive Board in January 2022.

Charges

Reflecting high levels of lending activity, charges levied on outstanding credit continue to be the IMF’s main source of income. The basic rate of charge on IMF financing comprises the SDR interest rate plus a fixed margin expressed in basis points.

The IMF also levies surcharges on large amounts of credit that exceed a defined threshold relative to a member’s quota (level-based surcharges), and they are higher when this threshold has been exceeded for a defined period of time (time-based surcharges) (Table 2.1).

In October 2024, in the context of the review of charges and the surcharge policy, the Executive Board agreed to reduce the margin for the rate of charge from 100 basis points to 60 basis points above the SDR interest rate for the remainder of FY 2025—beginning November 1, 2024—and for FY 2026. The Executive Board emphasized the need for continued vigilance given heightened uncertainty. In April 2026, the Executive Board agreed to maintain the margin at 60 basis points for FY 2027 to FY 2028, as there were no fundamental changes in the underlying factors relevant for setting the margin.

In addition to charges and surcharges, the IMF levies service charges, commitment fees, and special charges. A service charge of 0.5 percent is levied on each drawing from the GRA. A commitment fee is charged at the beginning of each 12-month period on amounts available for purchase under GRA arrangements during that period. The fee is refundable (except in the case of arrangements under the Short-Term Liquidity Line, for which the fee is nonrefundable) once a purchase under the arrangement during the period covered by the fee takes place. The IMF also levies special charges on overdue charges, but only for the first six months a member is in arrears.

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Remuneration and Interest on Borrowing

On the expenditure side, the IMF pays interest (remuneration) to members on their quota-based creditor positions in the GRA (known as “remunerated reserve tranche positions”). The current rate of remuneration is equal to the SDR interest rate. The IMF also pays interest at the SDR interest rate on any outstanding borrowing under the New Arrangements to Borrow (see “Borrowing by the IMF”).

Burden Sharing

The rates of charge and remuneration can be adjusted under a burden-sharing mechanism that distributes the cost of overdue financial obligations equally between debtor and creditor members.

Net Income Distribution and Total Comprehensive Income

Including net investment income of SDR 984 million (US$1.3 billion) transferred from the Investment Account, GRA net income for FY2026 amounted to SDR 1.9 billion (US$2.6 billion) before the net income distribution decision and the related transfer of SDR 1.38 billion (US$1.9 billion) from GRA resources to the Interim Placement Administered Account, which took place under the distribution framework approved by the Executive Board in October 2024. Net income reflects mainly income from strong lending activity and investment income, including the income from the Fixed-Income Subaccount of SDR 833 million (US$1.1 billion) and an Endowment Subaccount payout of SDR 151 million (US$208 million) transferred to the GRA to meet administrative expenses. The IMF’s total comprehensive income for FY 2026, including retained income in the Investment Account of SDR 1 billion (US$1.3 billion) and the pension-related remeasurement gain of SDR 1.9 billion (US$2.6 billion) following remeasurement of the assets and liabilities of the IMF employee benefit plans in accordance with International Financial Reporting Standards (International Accounting Standard 19, “Employee Benefits”), was SDR 4.8 billion (US$6.5 billion).

Financing

The IMF makes resources available to its members through four channels: regular (nonconcessional) lending from the GRA, concessional lending from the Poverty Reduction and Growth Trust, and longer-term lending to support structural reforms from the Resilience and Sustainability Trust (all discussed in Part 2), as well as via the SDR Department, through which its participants can exchange their SDR holdings for freely usable currencies.

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Quotas: Where the IMF Gets Its Money

The IMF’s 191 member countries provide resources for loans primarily through their quota subscriptions, which, together with basic votes, also determine their voting power. Multilateral borrowing and bilateral borrowing arrangements serve as second and third lines of defense in times of crisis. Together, these resources give the IMF access to about $1 trillion in nonconcessional lending firepower to support members. Concessional lending, affordable long-term financing for longer-term structural challenges, and debt relief for low-income countries are financed through separate contribution-based trust funds.

Each member is assigned a quota based broadly on its position in the world economy. IMF quotas total SDR 476 billion (about $653 billion)¹ The value of the SDR, the IMF’s unit of account, is based on a basket of currencies (see “Special Drawing Rights” section).

The Articles of Agreement provide for periodic reviews of members’ quotas. The IMF’s Board of Governors conducts general quota reviews at least every five years. The two main issues addressed in a general review are the size of an overall quota increase and the distribution of the increase among the members. First, a general quota review allows the IMF to assess the adequacy of quotas both in terms of members’ balance of payments financing needs and in terms of the IMF’s own ability to help meet those needs. Second, a general review allows for increases in members’ quotas to reflect changes in their relative positions in the world economy. The Board of Governors may also, at any other time, approve adjustments to the quotas of individual members at their request.

The process for all quota adjustments involves first a decision by the Executive Board, which requires a majority of votes cast. The Executive Board’s proposal is then conveyed to the Board of Governors for a vote. Approval by the Board of Governors requires a majority of 85 percent of total voting power. The Board of Governors Resolutions may also contain additional effectiveness conditions for the quota adjustment, such as a minimum threshold of consent by individual members to their respective quota increases.Finally, a member must consent to and pay for its individual quota increase for its new quota to become effective.

General reviews do not always result in quota increases. Seven reviews concluded that no increase in overall quotas was needed. In the other nine reviews, the overall quota increases ranged from 31 percent to 100 percent. Quota increases during general reviews have comprised one or more of three possible elements: (1) an equal proportional element distributed to all members according to their existing quota shares, (2) a selective element distributed to all members in accordance with the quota formula, and (3) an ad hoc element distributed to a subset of members according to agreed criteria².

On November 7, 2023, the Executive Board proposed to the Board of Governors a 50 percent increase allocated to members in proportion to their current quotas (that is, an “equiproportional” quota increase). On December 15, 2023, the Board of Governors concluded theSixteenth General Review of Quotas (16th GRQ) and approved the proposed 50 percent increase in IMF members’ quotas (SDR 238.6 billion, or $327.4 billion), which will bring total quotas to SDR 715.7 billion ($982 billion).

When the quota increase becomes effective, borrowed resources comprising the New Arrangements to Borrow (NAB) will be reduced and the Bilateral Borrowing Agreements will be phased out. The resolution sets two general effectiveness conditions for the quota increases under the 16th GRQ:

• The first condition is that no quota increase under the 16th GRQ can take effect unless members with at least 85 percent of total quotas on November 7, 2023, consent in writing to their quota increases. The resolution set the deadline for the IMF to receive members’ consents as November 15, 2024, and provided that the Executive Board may extend this deadline as it may determine.
• The second condition is that no quota increase under the 16th GRQ can take effect unless participants in the NAB provide the consents necessary for the NAB rollback to take effect.

Once these general effectiveness conditions are met, a member’s quota increase will take effect once that member has consented to, and paid for, its quota increase. On November 7, 2025, the Executive Board extended the deadline for the IMF to receive members’ consent to the increases in their quotas under the 16th GRQ to May 15, 2026. On May 8, 2026, the Executive Board approved another six-month extension of the period through November 15, 2026.³

When implemented, the increase in quotas will strengthen the quota-based nature of the IMF by reducing reliance on borrowing. The changes in the composition of lending capacity will ensure the primary role of quotas in the IMF’s lending capacity to help safeguard global financial stability and respond to members’ needs in an uncertain and shock-prone world.

Quota Payments

The conditions for implementing the doubling of quotas approved under the 14th General Review of Quotas, from about SDR 238.5 billion (about $327.2 billion) to SDR 477 billion (about $654.5 billion), were met on January 26, 2016. As of April 30, 2026, all but two IMF members had made their quota payments, accounting for more than 99 percent of the total quota increases, and total quotas stood at SDR 476 billion (about $653 billion).

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Borrowing by the IMF

As noted, the IMF is a quota-based institution. However, borrowed resources continue to play a key role in supplementing quota resources through the New Arrangements to Borrow and the bilateral borrowing agreements (BBAs), serving, respectively, as second and third lines of defense after quotas.

The NAB is a set of credit arrangements with 40 participants, currently contributing an aggregate amount of SDR 364 billion. Once the 16th GRQ takes effect, the aggregate size of the NAB will be reduced to about SDR 303 billion. The current five-year NAB period, which started on January 1, 2026, is set through the end of 2030. NAB resources can be activated when the IMF’s resources need to be supplemented to forestall or cope with an impairment of the international monetary system. Activation requires the consent of participants contributing at least 85 percent of the amount contributed under total credit arrangements of participants eligible to vote. The NAB was activated 10 times between April 2011 and February 2016, the most recent activation.

BBAs are intended to serve as a third line of defense after quotas and the NAB. The current (2020) round of BBAs has been in effect since January 1, 2021, with an initial term through December 31, 2023. Following an Executive Board decision in May 2023 and subsequent consent from BBA creditors, their terms were extended by one year until December 31, 2024. In the context of the 16th GRQ, in March 2024, the Executive Board approved, subject to creditor consent, a framework for amending, and thereby extending, the BBAs beyond the end of 2024 to serve as transitional arrangements for maintaining the IMF’s lending capacity until the 16th GRQ quota increase becomes effective or for a maximum term until the end of 2027, based on the preference of individual creditors. As of April 30, 2026, 39 BBAs had been extended beyond the end of 2024, providing the IMF with a total credit amount equivalent to about SDR 136.6 billion. Resources under BBAs can be activated only if the amount of IMF resources otherwise available for financing has fallen below a threshold of SDR 100 billion and either the NAB has been activated or there are no available uncommitted NAB resources. Activation of BBAs requires approval by bilateral creditors representing 85 percent of the total credit amount committed.

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Special Drawing Rights

The SDR is an international reserve asset the IMF created in 1969 to supplement its member countries’ official reserves. It serves as the unit of accounts of the IMF and some other international organizations. The SDR is neither a currency nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. IMF members that are participants in the SDR Department (currently all members) may exchange SDRs for freely usable currencies.

The SDR’s value is currently based on a basket of five currencies: the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound. The currencies included are reviewed periodically; the most recent review of the valuation of the SDR basket was concluded in May 2022, and the updated basket went into effect August 1, 2022.

As of April 30, 2026, a total of SDR 660.8 billion (equivalent to about $906.6 billion) had been allocated to members, including through the August 2021 allocation of SDR 456.5 billion (equivalent to about $650 billion)—the largest allocation in history—in the context of the COVID-19 pandemic.

To amplify the benefits of this allocation, the IMF encouraged voluntary channeling of SDRs from countries with strong external positions to countries most in need. Consistent with this recommendation, several members have channeled SDRs to support the finances of the PRGT and the RST. On May 10, 2024, the IMF’s Executive Board approved the use of SDRs for the acquisition of hybrid capital instruments issued by prescribed holders. This authorized operation adds to the seven previously authorized operations, which are (1) the settlement of financial obligations, (2) loans, (3) pledges, (4) transfers as a security for performance of financial obligations, (5) swaps, (6) forward operations, and (7) donations.

Arrears to the IMF

Since June 2021, when Sudan cleared its arrears to the IMF, the IMF has had no cases of protracted arrears. To prevent and resolve arrears, the IMF has in place a strengthened cooperative strategy on arrears. This strategy consists of three elements: prevention, intensified collaboration, and remedial measures. Prevention is the first line of defense against the emergence of new cases of arrears and includes, among other things, IMF surveillance of members’ economic policies, policy conditionality attached to the use of IMF resources, assessment of members’ capacity to repay, safeguards assessments of central banks of members receiving IMF resources, and technical assistance by the IMF. Intensified collaboration includes staff-monitored programs to help members in arrears establish a track record on policies and payments, leading to eventual clearance of arrears to the IMF. Last, remedial measures are applied—using an escalating timetable—to members with overdue financial obligations that do not actively cooperate with the IMF⁴ to resolve their arrears problems.