Publication

This note analyzes the effects and mechanisms related to the first increase in the IMF quotas since 1998, particularly focused on the UK increased quota. Quotas are best understood as loans to the IMF: countries can draw down their quotas at short notice if required. In the UK, the portion of the quota that the IMF has drawn down counts as an asset of the National Loans Fund, and does not affect public borrowing or debt. Moreover, approval of a statutory instrument by the House of Commons is required to for the IMF quota to be increased. The changes to the quota will only come into effect once consent has been received from members representing at least 70% of the IMF’s voting share.