Where Does the IMF Get Its Money?

The IMF's resources come mainly from the quota (or capital) subscriptions that countries pay when they join the IMF. Countries pay 25 percent of their quota subscriptions in Special Drawing Rights (i.e. in international reserve assets) or in major currencies, such as U.S. dollars or Japanese yen, and 75 percent in their own currency. Quotas determine not only a country's subscription payments, but also its voting power, the amount of financing that it can receive from the IMF.

Quotas are intended broadly to reflect members' relative size in the world economy: the larger a country's economy in terms of output, and the larger and more variable its trade, the higher its quota tends to be. The United States of America, the world's largest economy, contributes most to the IMF, 17.6 percent of total quotas; Seychelles, the world's smallest, contributes 0.004 percent.

Members with balance of payments difficulties may borrow or draw (i.e. purchase foreign currencies from the Fund with their own currencies) up to 125% of their quota. The first 25% (“the reserve tranche”) may be drawn on demand, the remaining 100% is divided into four “credit tranches” of 25% each, and drawings here are “conditional” on members agreeing with the Fund a programme of measures (for example, deflation, devaluation) for removing their payments deficit. Members are required to repay their drawings over a three to five year period.