What are the Sources of IMF Finance?
The IMF is a cooperative institution in some ways like a credit union which derives the bulk of its financial resources from its members’ contributions (called quotas). Generally speaking, these resources are available for temporary lending to any member that experiences difficulties in paying its import bills and/or servicing its foreign debt, and that agrees to undertake reforms to correct the macroeconomic imbalances that underlie the problem. Members’ quota subscriptions constitute the largest source of funds at the IMF’s disposal. Members pay 25 percent of their quota subscriptions in “acceptable” (hard) currencies or in SDRs (a special reserve asset created by the IMF), and the rest in their own domestic currency. A review of quotas is conducted every five years to determine whether they need to be adjusted in light of the growth of the world economy and changes in individual countries’ economic positions. The quota increase under the latest General Review became effective in Jan
