Sweden’s IMF bill leaps more than two fold Thursday, 29 September 2011
The Swedish government has proposed to raise its capital contribution to the International Monetary Fund (IMF) to Skr45.2 billion, up from approximately Skr20.8 billion. The increase is made in a comprehensive review of IMF resources.
The proposal has been submitted in a bill to Swedish Parliament, writes the Swedish Finance Ministry in a statement.
AdvertisementThe IMF in a periodic review states that it needs to double its capital as there has been demand for financial aid from the IMF member countries in the wake of the economic and financial crisis.
Another purpose is to correct the individual member countries' efforts in the fund contribution to reflect countries' current economic strength.
With the review, the quota for the increase contribution reduces Sweden's share of the IMF's total quota resources from 1.01 to 0.93 percent. A total of Fund quotas is to be around Skr4 860 billion after the increase.
According to the IMF, the fund will at least every five years review member countries' efforts to see if the fund's resources are adequate given the demands of the business. Last quotas were increases after a general review in 1998.
Meanwhile, the Government proposes that Sweden should approve an amendment to the IMF's charter, which means that all representatives of the Fund's Board shall be filled in by elections.
The proposals are part of the reform of governance and control adopted by the IMF Board of Governors in December 2010, whose purpose is to enhance emerging and developing countries' influence in the fund. The goal is that the reform will enter into force by the IMF's annual meetings 2012.
By Scancomark.se Team
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