Bangladesh’s share in the International Monetary Fund (IMF) has doubled, giving the country more voting power.
This voting power is a member country’s maximum financial commitment to the IMF, and has a bearing on its access to IMF funding.
Bangladesh’s voting power increased from 0.15 per cent to 0.24 per cent through payment for its quota increases, the finance ministry said in a report on Wednesday.
According to the report, Bangladesh’s quota or share was increased 100 per cent to an SDR of 10.66 million.
SDR expands to special drawing rights, which is the IMF’s unit of accounts. An SDR equals Tk 112.51.
The increase made during the IMF’s quota review meeting in 2010 came into effect from Jan 26 this year.
Bangladesh’s current share in IMF is 0.245 per cent.
The country’s quota in IMF was last increased in 1998. Bangladesh was a shareholder of 5.33 million SDRs that worked out to 0.13 per cent of the Fund.
A member's quota subscription determines the maximum amount of financial resources the member is obliged to provide to the IMF.
A member is required to pay its subscription in full upon joining the Fund: up to 25 percent must be paid in SDRs or in widely accepted currencies such as the US dollar and Euro, while the rest is paid in the member's own currency.
On Wednesday, the government paid Tk 600 million for the new shares. Of this, Tk 150 million or 133,325,000 SDRs was paid in foreign currency and 399,995,000 SDRs in Taka.
The amount of financing a member can obtain from the IMF is based on its quota. A member can borrow up to 200 per cent of its quota annually and 600 per cent cumulatively.
The general review allows IMF to assess the adequacy of quota in terms of a member’s balance of payments financing needs and its own ability to help meet those needs.
The review also facilitates the increase in the quota of each member, reflecting changes in their relative positions in the world economy.