Bundesbank welcomes ratification of IMF quota and governance reform by USA
The United States Congress has ratified the quota and governance reform of the International Monetary Fund (IMF). The Bundesbank welcomes this move. "
The way is now free for implementing the agreed reforms. This is good news," noted Bundesbank President Jens Weidmann in his capacity as Governor of the Fund for Germany. The quota and governance reform was adopted back in 2010, with Germany ratifying the reform package in 2012.
The reforms will strengthen the representation of emerging and developing countries in IMF decisions, reflecting these countries’ stronger position in the global economy. This will enhance the Fund’s credibility and legitimacy. Germany, the IMF’s third-largest member with a voting share of 5.8%, will be affected by the quota shift. Its voting share in future will be 5.3%, making it the Fund’s fourth-largest shareholder after the United States, Japan and China. Brazil, India and Russia will then also rank among the IMF’s ten largest shareholders.
Once the quota increase enters into effect, the IMF’s quota resources will be doubled, giving it a comfortable level of own resources. The member countries’ quota subscription payments will then be the main source of funding for the IMF’s financial operations, in line with its specific structure. In line with its mandate pursuant to the German IMF Act, the Bundesbank will render the increased subscription payment for Germany to the IMF.