IMF Membership Endorses Package on IMF Resources and Governance Reform

IMF News, October 18, 2019

Source details

Canonical URL: IMF Membership Endorses Package on IMF Resources and Governance Reform

Press Release No. 19/379; October 18, 2019.
The IMF membership endorsed a package of actions on IMF resources and governance reform designed to ensure the IMF will continue to have sufficient resources to support its membership and to continue quota and governance reforms under the 16th General Review of Quotas.

Lesetja Kganyago, Chairman of the IMFC and Governor of the Reserve Bank of South Africa: “This endorsement by the International Monetary and Financial Committee (IMFC) highlights our support for the IMF to preserve its role at the center of the global financial safety net. The IMFC will continue to work to ensure that the IMF has sufficient resources and that its governance appropriately reflects developments in the global economy and its membership.”
IMF Managing Director Kristalina Georgieva: “I welcome this high-level endorsement, which demonstrates the strong support of our membership for the Fund’s mission. We will continue to work closely with our membership in the period ahead to ensure full implementation of this package.”

Reaffirmation of commitment to a strong, quota-based, and adequately resourced IMF to preserve its role at the center of the global financial safety net.
Noted lack of progress on a quota increase under the 15th Review and called on the Executive Board to complete its work on the 15th Review and on a package of IMF resources and governance reforms, and to report to the Board of Governors as soon as possible.
Support for maintaining the IMF’s current resource envelope.
Welcome for the extension of the 2016 Bilateral Borrowing Agreements by one year.
Expectation of consideration of:
- a doubling of the New Arrangements to Borrow, and
- a further temporary round of bilateral borrowing beyond 2020.

Commitment to revisiting the adequacy of quotas and continuing IMF governance reform under the 16th General Review of Quotas.
Inclusion of a new quota formula “as a guide.”
Extension of the 16th General Review of Quotas from 2020 to no later than December 15, 2023.
Continued commitment to ensuring the primary role of quotas in IMF resources.
Expectation that any adjustment in quota shares would be expected to result in increases in the quota shares of dynamic economies in line with their relative positions in the world economy and hence likely in the share of emerging market and developing countries as a whole, while protecting the voice and representation of the poorest members.

Executive Board to complete work on the 15th Review and report to the Board of Governors as soon as possible.
Continued work with membership to ensure full implementation of the endorsed package.

IMF Press Center — Press Release No. 19/379; October 18, 2019 — IMF Communications Department