Press Release No. 08/02

Press Release: IMF Executive Board Recommends to Governors Conclusion of Thirteenth General Quota Review

January 4, 2008

The Executive Board of the International Monetary Fund (IMF) has submitted a report to the IMF's Board of Governors recommending that the Thirteenth General Review of Quotas be concluded without an increase of quotas. The Board's recommendation is based on its assessment of the adequacy of Fund resources, in light of developments in the world economy and the international monetary system. The Executive Board noted that, while the size of the Fund has declined against a range of economic and financial indicators, the IMF's current liquidity position is at an all-time high. The Board also noted its intention to monitor closely and assess the adequacy of IMF resources during the period of the Fourteenth General Review, which will commence upon completion of the Thirteenth Review.

The Board's recommendation to conclude the Thirteenth General Review is separate from the on-going work program on quota and voice reform, authorized by the Board of Governors at its Singapore Annual Meetings in September 2006. Quota and voice reform will address inter alia issues related to the distribution of quotas.

The Governors are being asked to vote without formally meeting on the proposal to conclude the Thirteenth General Quota Review by January 28, 2008. The resolution to conclude the review must be adopted by a majority of the votes cast, provided that the replies received include those of a majority of Governors exercising two-thirds of the total voting power. Adoption of the resolution would mean that the total of IMF quotas remains at the current level of SDR 217.3 billion (about US$343 billion), before any increases agreed subsequently as part of the quota and voice reform.

The IMF's Articles of Agreement provide for the Board of Governors to carry out a general review of quotas at intervals of not more than five years and, if it deems it appropriate, propose an adjustment of the quotas of members. Each IMF member appoints one Governor, generally the finance minister or head of the Central Bank. The last quota review was concluded on January 28, 2003, without proposing an increase of quotas (See Press Release No. 03/14).