Turkey’s quota in IMF to be increased twofold
Posted by meb at October 2nd, 2009
Turkey’s quota in the International Monetary Fund (IMF) is expected to increase to more than 1 percent, giving Turkey the opportunity of getting more financial aid at a lower cost under new reforms which are expected to be high on the agenda of this year’s meeting of the fund, IMF sources were reported as saying on Thursday.
Turkey’s ad hoc quota currently stands at about 0.6 percent after it was increased from 0.45 percent during the annual meetings of the IMF-World Bank in 2006. Another twofold increase is expected to take place in this year’s meeting of the fund, increasing the quota from 1 to 1.5 percent.
The quota increase will allow Turkey to receive more financial aid from the fund, up to $6 billion, with more flexible conditions. The cost of receiving financial aid will decrease by a quarter. Furthermore, the influence of Turkey on IMF policy decisions will also increase since quotas also determine the voting power of the countries.
Quotas, which are the amount of money each member country contributes to the IMF, are based on the country’s size in the world economy and calculated according to gross national product (GNP), the openness of the economy, variables and reserves. The IMF’s 24-member executive board conducts general quota reviews every five years. Any changes require an 85 percent majority. As Turkey’s quota will be increased to more than 1 percent, more than several European Union member countries’ quotas, its voting power will equal that of Brazil.
source: Today’s Zaman
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