16th General Review of Quotas - FAQs

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16th General Review of Quotas - FAQs

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Bibliographic details

• Published: December 18, 2023

Overview

• Publication: Questions and Answers on the 16th General Review of Quotas.
• Date: December 18, 2023.
• These Q&As address the 16th General Quota Review and refer to an IMF Quotas Factsheet for additional background and basic facts about IMF Quotas.

IMF resources: permanent and temporary

• Permanent resources:
  • Derived from members’ quota subscriptions and constitute the primary source of IMF funding.
  • Quotas:
  • determine the maximum amount of financial resources a member is obliged to provide to the IMF,
  • are a key determinant of voting power in IMF decisions,
  • determine the maximum amount of loans a member can borrow from the IMF under normal access, and
  • determine a member’s share in a general allocation of SDRs.
• Temporary resources:
  • The IMF may supplement quota resources through borrowing if needed.
  • New Arrangements to Borrow (NAB):
  • Are between the IMF and a group of members and institutions (participants).
  • Constitute the second line of defense after quota resources.
  • Currently (as of December 15,2023), 40 NAB participants contribute an aggregate amount of SDR 364 billion (USD 489 billion) to the Fund’s total resource envelope.
  • Bilateral borrowing agreements (BBAs):
  • Are between the IMF and individual member countries.
  • Constitute the third line of defense after quota resources.
  • Currently, bilateral borrowing agreements with 42 creditors are in place for a total of SDR 141 billion (USD 189 billion).

Effectiveness conditions and timing for quota increases

• General effectiveness conditions in the resolution for the 16th General Review of Quotas:
  • Condition 1:
  • No quota increase can become effective unless members currently having not less than 85 percent of total quotas have consented in writing to the increases in their quotas.
  • The resolution sets the deadline for the Fund to receive members’ consents as November 15, 2024.
  • The Executive Board may extend this deadline as it may determine.
  • Condition 2:
  • No quota increase can become effective unless participants in the New Arrangements to Borrow (NAB) have provided consents necessary for the effectiveness of the NAB rollback.
• Timing of member-specific effectiveness:
  • Once the above general conditions are met, a member’s quota increase will be in effect after that member has provided its consent to, and paid for, its quota increase.
• Payments:
  • Payments of quota increases are due within 35 days after the later of:
  • (i) the date on which the member notifies the Fund of its consent; or
  • (ii) the date on which the general effectiveness conditions are met.
• Consent deadline:
  • The resolution sets the deadline for the Fund to receive members’ consents as November 15, 2024. The Executive Board may extend this deadline as it may determine.

NAB rollback: rationale and timeline

• Rationale:
  • The Board of Governors’ resolution envisages maintaining the Fund’s lending capacity.
  • To achieve this, the increase in permanent or quota resources will be offset by a commensurate decrease in temporary or borrowed resources through a NAB rollback and the phasing out of Bilateral Borrowing Agreements.
• Timeline and process:
  • Staff will consult with NAB participants on the rollback soon and expects that a proposal could be considered by the Executive Board in early 2024.
  • This proposal would then be submitted to NAB participants for their consent.

Access limits and related reviews

• GRA access limits:
  • A comprehensive review of access is planned for 2024 to assess the GRA access limits in the context of the 16th General Review of Quotas.
  • It is envisaged that, in line with past practice, any proposed changes to the access limits would be proposed to become effective at the same time as the new quotas take effect.
• PRGT access limits:
  • PRGT access limits were temporarily increased in December 2023.
  • PRGT access limits will be reviewed in the context of the forthcoming Review of the Fund’s Concessional Facilities and Financing expected to be completed in the Fall of 2024.

Content in this bundle

• 2020 Bilateral Borrowing Agreements Amounts by Creditor
  • 2020 Bilateral Borrowing Agreements Amounts by Creditor (Markdown version)
  • 2020 Bilateral Borrowing Agreements Amounts by Creditor (PDF)
• New Arrangements to Borrow: Amounts by Creditor
  • New Arrangements to Borrow: Amounts by Creditor (Markdown version)
  • New Arrangements to Borrow: Amounts by Creditor (PDF)

References

• IMF Quotas Factsheet