Acceptances to the IMF reforms

IMF reforms Acceptances

Question: How much does the Overall quota has been increased under the 14th General Quota Review which was implemented January 26, 2016?
(a) 50%
(b) 75%
(c) 100%
(d) 125%
Ans (c)
Related facts:

  • Under the 14th General Quota Review, 100% increase in the overall quota had been recommended.
  • As a result, 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).
  • Under this reform there is a shift of more than 6 percent of quota shares from over-represented (Developed) to under-represented (Developing)member countries.
  •  Due to this reform there will be fouremerging market and developing countries (EMDCs) (Brazil, China, India, and Russia) among the 10 largest shareholders in the Fund.
  •  Under the new proposal, the top 10 quota holder countries (in descending order) are United States of America, Japan, China, Germany, France, UK, Italy, India, Russia and Canada.
  •  As part of the reforms, for the first time, the IMF’s Executive Board will consist entirely of elected Executive Directors. Currently the members with the five largest quotas used to appoint an Executive Director.
  • With the reform in the quota IMF will ensure that the institution is able to better meet the needs of its members in a rapidly changing global environment.
  • The membership in 188-member IMF is quota based.
  •  A member’s quota determines that country’s financial and organizational relationship with the IMF, including:¬Subscriptions,Voting power and Access to financing.

Reference:
https://www.imf.org/external/np/sec/pr/2016/pr1625a.htm
http://www.imf.org/external/np/exr/facts/quotas.htm
https://www.imf.org/external/np/sec/misc/consents.htm
http://www.thehindu.com/business/india-gets-more-voting-rights-in-imf-reforms/article8163827.ece