Federal Council adopts dispatch on adjustment of International Monetary Fund resources
Bern, 31.05.2024 - During its meeting on 31 May 2024, the Federal Council adopted the dispatch on approving the adjustment of the resources of the International Monetary Fund (IMF) as part of the 16th General Review of Quotas. It requested Parliament to approve the corresponding adjustment of Switzerland's contributions to IMF resources.
The IMF is tasked with ensuring the stability of the international financial and monetary system. To this end, it can grant loans to member states in exceptional circumstances. Sound self-financing will help to ensure that the IMF can continue to perform this mandate effectively and credibly in the future.
In December 2023, the Board of Governors of the IMF decided to increase the member states' quotas by 50% in proportion to their existing quotas, and thus the IMF's resources. The relative country shares and voting powers are not affected by this. The IMF's total resources for lending will not be increased either, as the extraordinary resources made available to the IMF via New Arrangements to Borrow (NAB) and bilateral borrowing agreements (BBA) will be reduced by the same amount when the quota increase comes into force. This package now has to be approved by the IMF member states.
The new Swiss quota will be approximately CHF 10 billion, with an unchanged quota share of 1.21%. Overall, Switzerland will continue to provide the IMF with financial resources totalling around CHF 20 billion via its quota and NAB contributions. These funds are provided by the Swiss National Bank (SNB) without a federal guarantee, with the result that the Confederation has no financial obligations arising from either the existing quota or any increase in it. With the adjustment of the quota, Switzerland's BBA will cease to apply, and with it the corresponding federal guarantee provided to the SNB.
The provision of funds for IMF lending is part of Switzerland's active involvement in safeguarding international financial and monetary stability. This is of particular importance for Switzerland as an open and innovative economy with its own currency and an internationally highly interconnected financial sector.
Address for enquiries
Communications
State Secretariat for International Finance SIF
Tel. +41 58 462 46 16, info@sif.admin.ch
Publisher
The Federal Council
https://www.admin.ch/gov/en/start.html
State Secretariat for International Financial Matters
http://www.sif.admin.ch
