Ed. note: the Swiss federal government’s entire public web site is down at noon Wednesday, so we are unable to provide links
BERN, SWITZERLAND – Switzerland’s Federal Council (cabinet) Wednesday morning approved a package of reforms for the International Monetary Fund (IMF) covering the world body’s governance and quotas. The package was approved by the IMF in December 2010 but is being implemented piecemeal as countries vote. The reforms were designed to give a stronger voice to developing economies and to redress imbalances that reflect an older world economic picture.
Switzerland’s contribution quota initially rose to 1.59 percent from 1.45 percent, but post-reform it will be CHF1.21, and Switzerland drops from the 19th largest contributor to 19th, after Korea and Australia. Its contribution from the Swiss National Bank will, however, increase significantly, from CHF3.6 billion to CHF7.3b, with the reforms doubling the ordinary contributions of countries.
The increase in contributions is the first major one since 1998, says Bern in a statement issued Wednesday, and is designed to more correctly align contributions with economies and financial flows.
Switzerland’s share of IMF votes also falls, from 1.40 percent to 1.57 in March after an initial set of reforms was implemented, and now down to 1.17. The US remains by far the largest contributor, with the largest vote, followed by Japan, Grmany, France and the UK.