Press Release No. 98/2

Press Release: Board of Governors Approves IMF Quota Increase

February 6, 1998

The Board of Governors of the International Monetary Fund (IMF) has adopted a Resolution proposing an increase of 45 percent in the total IMF quotas to approximately SDR 212 billion (about US$288 billion) from SDR 146 billion (about US$199 billion). The adoption of the Resolution, which required an 85 percent majority of the total voting power of the IMF’s membership, completes the Eleventh General Review of Quotas.

A member that does not have overdue obligations to the General Resources Account of the IMF will be able to consent to the increase in its quota at any time before January 29, 1999. In order to meet that deadline, the member will have to have completed before that date whatever action may be necessary under its laws to enable it to give its consent. No increase in quotas shall take effect before the date on which the IMF determines that members having not less than 85 percent of the total of quotas on December 23, 1997 have consented to the increases in their quotas.

A member’s quota cannot be increased until it has consented to the increase and paid the subscription. A member must pay the increase in its subscription within 30 days after (a) the date on which the member notifies the Fund of its consent, or (b) the date on which the 85 percent participation requirement is met, whichever is the later. Twenty-five percent of the increase in each member’s quota will be paid in SDRs, or in currencies of other members specified by the IMF, subject to their concurrence (see Press Release No. 97/63, December 23, 1997).