J. Increases in Quotas of Members-Ninth General Review
- International Monetary Fund
- Published Date:
- June 1991
Report of Executive Board to the Board of Governors
1. Article III, Section 2(a) of the Articles of Agreement provides that “The Board of Governors shall at intervals of not more than five years conduct a general review, and if it deems it appropriate propose an adjustment, of the quotas of members.” The five-year period since the completion of the previous review of quotas ended on March 31, 1988. The Ninth Review was not completed by that date. In April 1988, May 1989, and December 1989 the Board of Governors decided to continue its review under Article III, Section 2(a). In December 1989, the Board of Governors requested the Executive Board to complete its work on the Ninth General Review with a view to a decision by the Board of Governors on the completion of the Review not later than March 31, 1990. The Executive Board believes that further consideration is needed of some of the substantive issues relating to the Ninth Review before it will be in a position to make appropriate recommendations to the Board of Governors. The Executive Board is submitting this report, and the attached draft resolution, to the Board of Governors, the organ competent under the Articles to deal with an adjustment of quotas, in accordance with Article III, Section 2 and Resolution No. 44-5, adopted December 29, 1989.
2. The Executive Directors have concluded certain technical aspects of their work. They have also considered further the issues relating to an increase in quotas under the Ninth General Review in the light of the guidance received from the Interim Committee as expressed in the communiqués issued at the conclusion of the Meetings of the Committee in April and September 1989. The Executive Directors have made substantial progress in their discussions on the Ninth General Review of Quotas, as well as all related issues including the strengthening of the Fund’s intensified cooperative approach in dealing with the problem of overdue financial obligations to the Fund.
3. The Executive Directors have concluded that further consideration of the issues relating to the increase in quotas is needed. Consequently, the Executive Board is not in a position to complete its work on the Ninth Review in time to enable the Board of Governors to complete the Review before March 31, 1990 as called for in Resolution 44-5.
The Executive Board therefore proposes that the Board of Governors continue its review and that the Executive Board submit a report to the Board of Governors, together with appropriate recommendations, with a view to enable the Board of Governors to complete the Ninth Review not later than June 30, 1990.
4. In view of the foregoing considerations, it is recommended that the Board of Governors adopt the resolution set forth below:
February 26, 1990
That the Board of Governors, having noted the report of the Executive Board entitled Increases in Quotas of Members—Ninth General Review, hereby resolves to continue its review of quotas under Article III, Section 2(a), and requests the Executive Board to complete its work on the Ninth General Review of Quotas with a view to a decision by the Board of Governors on the completion of the Ninth Review not later than June 30, 1990.
Adopted by the Board of Governors, effective March 29, 1990, and designated No. 45-1.