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IMF Proposes Quota Increase for China
The executive board of the International Monetary Fund (IMF) has proposed to the IMF board of governors an increase of China's quota to better reflect its position in the world economy following the resumption of Chinese sovereignty over Hong Kong, the IMF said Thursday.
The IMF executive board proposed an increase in China's quota to SDR 6,369.2 million (about US$8.4 billion) from SDR 4, 687.2 million (about US$6.2 billion).
The proposed quota represents about 3 percent of IMF's total quotas.
"The adoption of the proposal to increase China's quota requires a majority of 85 percent of the total voting power and governors are being asked to vote by February 5, 2001," said Horst Kohler, managing director of the IMF.
China will have 30 days from the approval by the governors to consent to, and pay, the increased quota subscription. The proposal provides that 25 percent of the quota increase, SDR 420.5 million (about US$550 million), be paid in SDRs or usable currencies specified by the IMF, with the remainder paid in China' s own currency.
The increase in China's quota would bring total IMF quotas to SDR 212.4 billion (about US$278.5 billion).
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