Fifteenth General Review of Quotas—Further Considerations

Policy Papers, March 5, 2021

Source details

Revisits the two-pillar framework for assessing the adequacy of Fund resources (quantitative pillar and qualitative pillar).
Quantitative pillar updated to:
- Include alternative assumptions.
- Provide a longer-term perspective on likely resource needs.
Qualitative pillar updated to:
- Highlight reforms since the global financial crisis.
- Discuss uncertainties in the global environment.
- Provide an assessment of the general impact of the various qualitative considerations.

Quantitative estimates are generally somewhat lower after factoring in the alternative assumptions.
The reductions in quantitative estimates are more than outweighed when the analysis is extended through the middle of the next decade, recognizing that the outcome of the 15th Review will likely determine permanent Fund resources through at least the middle of the next decade.
Taken together, the two pillars continue to make a case for at least maintaining existing Fund resources.

The paper presents simulations covering three illustrative sizes for quota increases:
- 50 percent
- 75 percent
- 100 percent
Simulation assumptions:
- Centered on broadly maintaining Fund resources.
- Assume the New Arrangements to Borrow (NAB) is maintained at its current level.
- Assume Bilateral Borrowing Agreements (BBAs) expire.

Longer-term perspective is critical because the 15th Review outcome will likely determine permanent Fund resources through at least the middle of the next decade.
Updated qualitative assessment balances recognition of post-crisis reforms with prevailing global uncertainties to inform resource adequacy judgments.

International Monetary Fund. "Fifteenth General Review of Quotas—Further Considerations", Policy Papers 2021, 009 (March 5, 2021).