We play an important role in the activities of various international financial institutions and develop bilateral cooperation with other foreign financial institutions.
International Monetary Fund
The International Monetary Fund (IMF) is an international financial organisation established at the UN conference in Bretton Woods, USA, in July 1944. It is headquartered in Washington, DC. The membership of the IMF includes 189 countries. Lithuania has been a member of the IMF since 1992.
The IMF’s primary purpose is to ensure the stability of the international monetary system. The main functions of the IMF are:
- Surveillance of the economic policies of IMF member countries, which aims to encourage them to implement economic policy and institutional reforms, adding to sustainable and balanced global economic growth. The IMF also monitors the financial sectors of its member countries. The IMF surveillance insights and recommendations are presented in Article IV Consultations Reports, World Economic Outlooks (WEO), Global Financial Stability Reports (GFSR) and the Fiscal Monitors.
- Financial assistance for member countries experiencing temporary balance of payments problems.
- Technical assistance to help countries strengthen their institutional capacities, allowing them to plan and implement efficient domestic economic and financial policies.
Quota subscriptions of each member country lay the financial foundation of the IMF. Each IMF member country is assigned a quota, denominated in Special Drawing Rights (SDRs). The assigned quota is broadly based on the country’s relative position in the world economy and determines the member’s voting power in the IMF decision-making process; the quota also determines its maximum financial commitment to the IMF and the extent of potential loans from the IMF.
Currently, Lithuania’s quota accounts for 0.09 per cent of the total IMF quota, whereas its voting power – 0.12 per cent of total IMF votes. In the highest decision-making body of the IMF – the Board of Governors – the Republic of Lithuania is represented by the Chair of the Board of the Bank of Lithuania.