Azerbaijan's decision to increase its quota in the International Monetary Fund (IMF) - adopted at a Baku meeting of the IMF voting group and the World Bank - reflects the country's high level of economic development.
"The country now ranks 65th in the world by economy's volume, compared to 1995, when it ranked 124th," Head of Azerbaijan's Central Bank (CBA) Elman Rustamov, said addressing the event. He also noted that Azerbaijan's nominal GDP per capita has doubled every five years since 1995.
Saying that currently the level of poverty in Azerbaijan is three times lower than the global level, Rustamov put emphasize on the continuously improving international rating of Azerbaijan adding that the country ranks 39th by the index of global competition.
Country's decision to increase its quota in the IMF was announced by Finance Minister Samir Sharifov who also addressed the event.
Meanwhile, Division Chief of the IMF Middle East and Central Asia Department, Hossein Samiei said Azerbaijan's management model of its energy resources provides an opportunity for sustainable economic growth, as well as a diversification of economic development.
The International Monetary Fund, which includes 188 countries, is working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Overseeing international monetary system and monitoring the financial and economic policies of its members, Azerbaijan keeps track of economic developments on a national, regional, and global basis, consulting regularly with member countries and providing them with macroeconomic and financial policy advice.
When a country joins the IMF, it is assigned an initial quota in the same range as the quotas of existing members of broadly comparable economic size and characteristics. The IMF uses a quota formula to help assess a member's relative position. A member's quota subscription determines the maximum amount of financial resources the member is obliged to provide to the IMF. Moreover, the quota largely determines a member's voting power in IMF decisions.
What is more, the amount of financing a member can obtain from the IMF (its access limit) is based on its quota. For example, a member can borrow up to 200 percent of its quota annually and 600 percent cumulatively. However, access may be higher in exceptional circumstances.
Usually every five years, IMF's Board of Governors conducts general quota reviews. Any changes in quotas must be approved by an 85 percent majority of the total voting power, and a member's quota cannot be changed without its consent. There are two main issues addressed in a general quota review: the size of an overall increase and the distribution of the increase among the members.
First, a general quota review allows the IMF to assess the adequacy of quotas both in terms of members' balance of payments financing needs and its own ability to help meet those needs. Second, a general review paves the way for increasing members' quotas to reflect changes in their relative positions in the world economy.
Azerbaijan joined the IMF on September 18, 1992, and its quota amounts to about $ 248 million.