Press Release No. 15/20

Press Release:IMF Executive Board Reports to the Board of Governors on the 2010 Reforms and the Fifteenth General Review of Quotas

January 28, 2015

The Executive Board of the International Monetary Fund (IMF) adopted on January 27, 2015, a report and proposed resolution to the Board of Governors—the IMF’s highest decision-making body—on the 2010 Reforms and the Fifteenth General Review of Quotas.

In its Report, the Executive Board notes that it has so far delayed commencement of its work on the Fifteenth Review in order to facilitate the implementation of quota and governance reforms agreed in 2010 (the “2010 Reforms”). As a result, it has not completed its work in accordance with the timetable set forth in earlier Board of Governors resolutions (see below). The Executive Board also reiterates its agreement that achieving broad consensus on a new quota formula would best be done in the context of the Fifteenth Review, and that the discussions on this issue would be integrated and move in parallel with the discussion on the Fifteenth Review.

Against this background, the Executive Board proposes that the Board of Governors adopt a Resolution expressing deep regret that the Fourteenth Review quota increases and the Board Reform Amendment have not become effective, and that the Fifteenth Review has not been completed. The proposed resolution also emphasizes the importance and urgency of the 2010 Reforms for the Fund’s credibility, legitimacy, and effectiveness, and reiterates the commitment to their earliest possible implementation, while urging the remaining members who have not yet accepted the Fourteenth Review quota increases and the Board Reform Amendment to do so without further delay.

The proposed resolution calls for the completion of the Fifteenth Review by December 15, 2015, in line with the timetable mandated under the Articles of Agreement. It also calls on the Executive Board to work expeditiously and to complete its work as soon as possible on interim steps in the key areas covered by the 2010 Reforms, and thus to enable the Board of Governors to reach agreement on steps that represent meaningful progress towards the objectives of the 2010 Reforms by June 30, 2015. The proposed resolution stresses that such interim steps should not in any way be seen as a substitute for the 2010 Reforms, which remain the highest priority.

Background

In December 2010 when the Fourteenth General Review of Quotas and the Proposed Amendment on the Reform of the Executive Board were approved, the Board of Governors requested the Executive Board to bring forward the timetable for completion of the Fifteenth General Review of Quotas to January 2014 (see Press Release No. 10/418).¹ The Executive Board was also requested to complete a comprehensive quota formula review by January 2013.² These forward-looking elements were part of an agreed package of 2010 quota and governance reforms.

The initiation of the work on the Fifteenth Review was put on hold to facilitate the achievement of the required acceptance threshold for the entry into force of the Board Reform Amendment, which is one of the general conditions for effectiveness of the quota increases under the Fourteenth General Review of Quotas. Accordingly, in light of delays in the implementation of the 2010 Reforms, the Board of Governors, in February 2014, adopted a resolution with the objective of completing the Fifteenth Review by January 2015 (see Press Release No. 14/22).³ However, the Board Reform Amendment and the quota increases under the Fourteenth Review have still not become effective and the Fifteenth Review could not be completed by January 2015.⁴

¹ Board of Governors Resolution No. 66-2 on the Fourteenth General Review of Quotas and Reform of the Executive Board, adopted December 15, 2010. The deadline for completing the Fifteenth Review mandated under the Articles of Agreement is December 15, 2015 (Article III, Section 2(a) requires the Board of Governors to conduct a general review at intervals of not more than five years).

² The Executive Board reported to the Board of Governors on the outcome of the quota formula review on January 30, 2013. The report noted that important progress had been made in identifying key elements that could form the basis for a final agreement on a new quota formula. (See Report of the Executive Board to the Board of Governors on the Outcome of the Quota Formula Review http://www.imf.org/external/np/pp/eng/2013/013013.pdf).

³ Board of Governors Resolution No. 69-2 on 2010 Reforms and Fifteenth General Review of Quotas—Report of the Executive Board to the Board of Governors, adopted February 12, 2014.

⁴ As of mid-January 2015, 146 members (requirement: 113) representing 77.1 percent of the total voting power (requirement: 85 percent) have agreed to the Board Reform Amendment. Acceptance by the United States is needed to reach the required acceptance threshold for the Board Reform Amendment.