The proposed increase would “enhance the IMF’s permanent resources” while reducing its reliance on borrowing to finance loans, the fund said in a statement.
The proposal still has to be validated before December 15 by the board of governors, who are usually finance ministers or other economic authorities of the institution’s member countries.
“The proposed quota increase comes at a complex time for the global economy and IMF members,” said IMF Managing Director Kristalina Georgieva.
“An adequately resourced IMF is essential to safeguard global financial stability and respond to the potential needs of its members in an uncertain and crisis-prone world,” he added in a statement.
The increase in quotas is a controversial issue because they imply voting power for each Member State, in such a way that advanced economies have more than emerging or developing countries and can also have more funds despite needing them less.
Several emerging and developing countries advocate redistributing quotas to have more financing capacity.