Press Release: Historic Quota and Governance Reforms Become Effective

IMF News, January 27, 2016

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The amendment to the IMF’s Articles of Agreement creating an all-elected IMF’s Executive Board (Board Reform Amendment) entered into force yesterday.
The quota increases under the 14th Review, which were conditional on the entry into force of the Board Reform Amendment, are expected to come into effect in the coming weeks.
With the entry into force of the Board Reform Amendment and all other general effectiveness conditions met, members can now pay for their quota increases to make them effective. This process is expected to be substantially completed within one month.
To make their respective new quotas effective, members must make their quota payments within 30 days of the later of (i) the date on which the member consents to its new quota or (ii) the date on which the 14th Review General increase in quotas goes into effect.
As of January 26, 2016, members representing close to 98 percent of total quotas had already consented to their quota increases.

The quotas of each of the IMF’s 188 members will increase to a combined SDR 477 billion (about US$659 billion) from about SDR 238.5 billion (about US$329 billion).
More than 6 percent of quota shares will shift to dynamic emerging market and developing countries and also from over-represented to under-represented IMF members.
Four emerging market countries (Brazil, China, India, and Russia) will be among the 10 largest members of the IMF.
Other top 10 members include the United States, Japan, and the four largest European countries (France, Germany, Italy, and the United Kingdom).
The quota shares and voting power of the IMF’s poorest member countries will be protected.

For the first time, the IMF’s Board will consist entirely of elected Executive Directors, ending the category of appointed Executive Directors.
The scope for appointing a second Alternate Executive Director in multi-country constituencies with seven or more members has been increased to enhance these constituencies’ representation in the Executive Board. As a result, 13 constituencies—including both African constituencies—are currently eligible to appoint an additional Alternate Executive Director.
Advanced European countries have committed to reduce their combined Board representation by two chairs.

The reforms double the IMF’s permanent capital resources to SDR 477 billion (about US$659 billion).
The reforms represent a major step toward better reflecting in the institution’s governance structure the increasing role of dynamic emerging market and developing countries and are expected to reinforce the credibility, effectiveness, and legitimacy of the IMF.
Following the effectiveness of the 14th General Review of Quotas, work will turn to the 15th General Review of Quotas and securing the necessary broad consensus, including on a new quota formula.

The entry into force of the Board Reform Amendment approved by the Board of Governors in 2010 required the acceptance by three fifths of the Fund’s members representing 85 percent of the total voting power.
The 2010 Quota and Governance reforms were approved by the IMF’s Board of Governors in December 2010 and built on an earlier set of reforms approved in April 2008.

Press Release No. 16/25 — January 27, 2016 — IMF COMMUNICATIONS DEPARTMENT — Media Relations