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World: IMF Approves Equity Allocation Of SDRs

  • Robert Lyle

Hong Kong, 23 September 1997 (RFE/RL) - The Governors of the International Monetary fund (IMF) have formally approved doubling the amount of its currency, the SDR, so that all nations will have the same proportional amount.

Thirty-eight nations, including most of the countries of East and Central Europe and Central Asia, never received any of the Special Drawing Rights because they joined the fund after the last allocation in 1981.

Disputes between several of the largest IMF members over the size and method of the equity allocation kept it from being approved for years. However, the 24-member board of IMF executive directors, representing all 181 nations in the fund, finally reached agreement on the idea last week-end, along with a separate proposal to increase the quotas, or membership fees, of all member nations by 45 percent.

That proposal will not be ready for a vote for several months.