IMF to maintain Fund’s lending capacity of about $1 trillion beyond 2020 as board of governors adopts resolution on quota reviews

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Simon Ateba is Chief White House Correspondent for Today News Africa. Simon covers President Joe Biden, Vice President Kamala Harris, the U.S. government, the United Nations, the International Monetary Fund, the World Bank and other financial and international institutions in Washington D.C. and New York City.

The International Monetary Fund (IMF) would maintain the Fund’s lending capacity of about $1 trillion beyond 2020 after the board of governors adopted on February 7, 2020, a resolution concluding the Fifteenth General Review of Quotas with no increase in IMF quotas.

The resolution also provides guidance for the Sixteenth General Review of Quotas to continue the process of IMF governance reform in line with the October 2019 IMFC commitments .

Under the resolution, the Sixteenth Review should be concluded no later than December 15, 2023, and the Executive Board is requested to report to the Board of Governors on progress on the Sixteenth Review semi-annually, with a first report by the 2021 Annual Meetings.

In a statement received by TODAY NEWS AFRICA in Washington DC, IMF said “the resolution marks another milestone in implementing the package on IMF resources and governance reform endorsed by the IMF membership during the 2019 Annual Meetings“.

“The package also includes a doubling of the New Arrangements to Borrow (NAB), approved by the Executive Board on January 16 , and consideration of a further temporary round of bilateral borrowing beyond 2020 to maintain the Fund’s lending capacity of about US$1 trillion.

In the resolution, the Board of Governors calls on NAB participants to provide promptly the required consents to make the doubling of the NAB effective by January 1, 2021. Work is underway to secure agreement on a further temporary round of bilateral borrowing agreements beyond 2020,” the Fund’s statement said.

Simon Ateba

Simon Ateba is Chief White House Correspondent for Today News Africa. Simon covers President Joe Biden, Vice President Kamala Harris, the U.S. government, the United Nations, the International Monetary Fund, the World Bank and other financial and international institutions in Washington D.C. and New York City.

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