Where the IMF Gets Its Money
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Bibliographic details
- Published: December 19, 2023
Overview
- The IMF lends to members on general – or non-concessional – terms using funds provided mainly by member countries through their payment of quotas.
- Multilateral and bilateral arrangements can supplement quota funds and play a critical role in the IMF’s support for member countries in times of crisis.
- The IMF’s current total resources of about SDR 982 billion translate into a capacity for lending of about SDR 695 billion (around US$932 billion), as of mid-December 2023.
- The factsheet was last updated in May 2025.
Funding Sources
- IMF funds come from three sources: member quotas, multilateral borrowing arrangements, and bilateral borrowing agreements.
- Countries can count their contributions to the IMF as their own reserve assets under a unique funding model that does not require budget appropriations or any other taxpayer support.
Member Quotas
- Member quotas are the primary source of IMF funding. A member country’s quota reflects its size and position in the world economy.
- The IMF regularly reviews quotas to assess their adequacy overall and their distribution among members.
- Quick facts on quota reviews:
- The IMF Board of Governors concluded the 16th quota review, in December 2023, approving an increase in quotas by 50 percent. The next step is for member countries to consent to their respective quota increases.
- The previous review concluded in February 2020 without a quota increase.
- The previous increase in quotas, to SDR 477 billion (US$ 640 billion), was agreed to under the 14th Review, which concluded in December 2010 and took effect in January 2016.
New Arrangements to Borrow (NAB)
- The NAB is the main multilateral backstop for quotas.
- The size of the NAB was doubled effective January 2021.
- Key NAB figures and rules:
- NAB currently contributes SDR 364 billion, or $489 billion, to total IMF resources.
- 40 participants: the size of the NAB now stands at SDR 364 billion (US$485 billion), with Greece and Ireland becoming participants in 2022 and 2023.
- The current five-year period of NAB effectiveness runs from January 2021 through December 2025.
- NAB activation requires support from 85% of participants eligible to vote.
- NAB was activated 10 times between April 2011 and February 2016.
Bilateral Borrowing Agreements (BBAs)
- BBAs serve as a third line of defense after quotas and the NAB.
- The IMF has entered into several rounds of BBAs since the onset of the global financial crisis.
- Key BBA details:
- The 2020 bilateral borrowing agreements include 42 creditors.
- Total commitments from 42 effective agreements: SDR 141 billion (US$188 billion).
- Initial terms of three years through end-2023, extendable with creditor consents through end-2024.
- Activation of the agreements requires support of 85% of creditors eligible to vote.
References