Kazakhstan increases quota in IMF authorized capital
May 1. Trend
By Elena Kosolapova
Kazakhstan increases its quota in the authorized capital of the International Monetary Fund (IMF) from 365.7 million Special Drawing Rights (SDRs) to 427.8 million SDRs, said the message of the National Bank of Kazakhstan.
The message said that the corresponding decision was made by the Board of the National Bank of Kazakhstan. The share of the votes of Kazakhstan will be increased by 17 percent, the message said.
In accordance with the articles of the agreement with the IMF, every state, increasing its quota must pay 25 percent of the sum of the quota increase in the fund. Payment of the amount, which is equivalent to 75 percent of the quota increase, may be carried out through the issuance of promissory notes.
Given the quota increase, gold assets of National Bank of Kazakhstan will not be reduced, as 25 percent share is a component of the reserve assets of the member state and 75 percent share is conditional and is not classified as an asset or liability.
“In general, the quota increase of Kazakhstan in the capital of the IMF will provide further financial stability of the country, as Kazakhstan will be able to count on the IMF credit line in the amount of three times the amount of the quota,” said the message. “The growing influence of Kazakhstan in the capital of the IMF will have a positive impact on improving the performance of the country rating and strengthen the country’s position during voting in the structures of the fund.”
The IMF was established on the UN international monetary conference in Bretton Woods in 1944. In 1969, the Fund introduced the so-called Special Drawing Rights – SDR. The course of the SDR is daily determined by the exchange rates of several major convertible currencies.