International Monetary Fund
The International Monetary Fund (IMF) is an international financial organization comprising 186 Member States. It was established during the conference of the United Nations in Bretton Woods (US) in 1944. The purpose of the establishment of the IMF was to encourage international cooperation in the monetary and exchange rates policy, strengthen economic growth, increase employment and provide temporary financial support to resolve problems of the balance of payments of the countries.
Lithuania became a member of the IMF in 1992. Cooperation between the IMF and Lithuania is based on economic consultations under Article IV of the Articles of Agreement of the IMF. This Article obliges the IMF member countries to pursue such economic and financial policy what would ensure financial and economic stability on both domestic and global levels. Since the IMF conducts the ongoing surveillance of the countries and offers recommendations on how to reach and maintain that stability, representatives of the IMF pay visits to Lithuania every year, assess economic situation and development trends. Lithuania also participates in the Financial Stability Assessment Program run by the IMF. For more detailed information see the IMF internet site.
The highest decision-making body of the IMF is the Board of Governors, to which each member country delegates its governor and alternate governor. The governor is usually the head of the central bank or the minister of finance. In the Board of Governors Lithuania is represented by the Chairman of the Board of the Bank of Lithuania.
The IMF’s Executive Board is responsible for conducting the day-to-day business. In the Executive Board member countries are represented by 24 executive directors. Interests of Lithuania are represented by the Executive Director of the Group of Nordic and Baltic Countries (Denmark, Finland, Estonia, Iceland, Latvia, Lithuania, Norway and Sweden).
Each IMF member country is allocated a quota in terms of special drawing rights (SDR). Quota contributions of each country form the financial basis of the IMF. Quota of a particular country reflects its relative weight in global economy and the voting power within the IMF expressed in voting rights (In total, Nordic and Baltic countries have 3.52 per cent of voting rights). The quota establishes financial commitments of a particular country to the IMF and determines how much country can borrow. The initial quota of Lithuania was SDR 69 million and now amounts to SDR 144.2 million. After the quota reform which was started in 2008 is finalized, the quota of Lithuania will be increased to SDR 183.9 million.
Documents:
IMF Article IV consultations
Concluding statements of the IMF missions
Financial sector assessment of Lithuania
Reports of the IMF constituency of the Nordic-Baltic countries
World Bank group
The World Bank group is composed of five closely interrelated international institutions:
- International Bank for Reconstruction and Development
- International Finance Corporation
- International Development Association
- International Centre for Settlement of Investment Disputes
- Multinational Investment Guarantee Agency
More about these institutions
Lithuania has been cooperating with the World Bank since 1992 – during the economic restructuring period, the World Bank provided to Lithuania financial and technical assistance, in 2006 Lithuania’s status changed from the beneficiary of assistance to the position of a donor. In the World Bank Board of Governors Lithuania is represented by Lithuania’s Minister of Finance and Deputy Chairperson of the Board of the Bank of Lithuania is Alternate Governor.
Bank for International Settlements
The Bank for International Settlements (BIS) started its activity in 1930 and is the world's oldest international financial organisation. Currently, members of the BIS are 55 central banks, the European Central Bank and the International Monetary Fund.
The BIS encourages international cooperation among central banks in seeking monetary and financial stability, develops the international standards in the fields of banking supervision, financial settlements and other important central banks areas.
In 1992, the membership of Lithuania in the BIS was restored and the BIS shares held by the Bank of Lithuania since 1931 were returned. For the moment, the Bank of Lithuania holds 1,070 shares of the BIS. The Chairman of the Board of the Bank of Lithuania participates in the Annual General Meetings of the BIS shareholders and other regular meetings of the governors of the central banks organized by the BIS.
Co-operation with Foreign Central Banks
The Bank of Lithuania maintains constant relations with central banks of foreign countries and EU Member States. This co-operation is based on bilateral and multilateral initiatives, with the purpose of sharing experience in monetary policy, banking supervision and other important areas of central banking.
