Slovakia is to increase its contribution to the funds of the International Monetary Fund (IMF).
The Slovak Cabinet agreed to increase Slovakia’s so-called member quota in the international financial institution at its regular meeting on Wednesday, the SITA newswire wrote. Slovakia’s member quota, which reflects the amount it contributes to the IMF's general resources and available reserves, will be increased by SDR70 million (approximately about €79.7 million) to SDR 427.5 million (€487 million), explained the National Bank of Slovakia (NBS) and the Finance Ministry in a joint proposal. SDRs are special drawing rights, an artificial currency unit used by the IMF and other international organisations.
Slovakia’s member quota will thus go up from the current 0.164 percent to 0.179 percent. “The increase in Slovakia’s member quota reflects the country's economic growth and will contribute to Slovakia’s position in the IMF [by increasing Slovakia's voting rights]. It is also important from the point of view of potential allocation of SDRs and represents a criterion for many financial resources that the country can draw from the IMF,” the central bank and the Finance Ministry stated.
The size of a country’s member quota determines the country’s voting rights in various political and operational decisions of the IMF. The IMF’s board of governors approved the reform of member quotas in a resolution adopted on April 28, 2008, in which it decided to increase quotas for 54 countries, including Slovakia. SITA
Compiled by Zuzana Vilikovská from press reports
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1. Apr 2009 at 14:00