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IMF could increase Bulgaria's quota by $72 million

Tue, Jul 21 2009 09:47 CET byDnevnik.bg 713 Views
IMF could increase Bulgaria's quota by $72 million

Bulgaria’s quota in the International Monetary Fund (IMF) could be increased by $72.5 million to just over $1 billion if a proposal for a $ 250 billion Special Drawing Rights (SDRs) allocation is approved by members in a vote scheduled for early August.

The SDRs, an international reserve asset and the fund's internal unit of account, are disbursed in proportion to each member's IMF quota.

The first step of the procedure was made on July 20 2009, when the IMF’s Board of Governors approved the proposal. This means that Bulgaria will raise the cap of the financing it can tap from the fund to $12 billion.

"The SDR allocation is a key part of the fund's response to the global crisis, offering significant support to its members in these difficult times," IMF managing director Dominique Strauss-Kahn told Reuters in a statement.

Bulgaria has an IMF membership quota of SDR 640.2 million (almost $1 billion), which accounts for 0.29 per cent of all SDRs. The SDRs are disbursed in proportion to each member's quota, which means that Bulgaria will receive $72.5 million.

The proposal will be voted by member states on August 7. If if gets the green light, the new SDR allocation should be disbursed by August 25.

The IMF soothed concerns in some countries that the allocation would fuel inflation, saying it only made 0.33 per cent of GDP.

Source: Dnevnik.bg

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