The Board of Executive Directors of the International Monetary Fund has approved a proposal by the Fund's managing director, Kristalina Georgieva, to distribute $650 billion among member countries, the largest distribution in the history of the IMF.
According to Kristalina Georgieva, the final decision on the distribution of money will be made by the end of August 2021. she also noted that SDR allocation would help every IMF member country, especially vulnerable countries, and strengthen their response to the COVID-19 crisis
It is noted that the distribution of money will be in proportion to the quotas of countries in the IMF. Ukraine, which has been a member of the IMF since 1992, will receive $2,89 billion according to its quota of SDR 2.011 billion.
Vladislav Rashkovan, executive director from Ukraine to the IMF, believes that, in general, this is a very positive step on the part of the IMF, including for Ukraine, which will help the government to calmly manage public finances.
Under the IMF's Articles of Agreement, the Managing Director can propose an overall SDR allocation if he is convinced that the allocation will help meet long-term global reserve needs and avoid stagnation and deflation.
Once the Managing Director's proposal is approved by the Executive Board, it is passed on to the Board of Governors. Their decision to approve the SDR allocation requires the support of members representing 85% of the total votes of members who are SDR members. Distribution of SDR among IMF members in proportion to the shares of the IMF quotas.