Memorandum of Understanding within the framework of the Bretton Woods institutions
Publication date: 24-04-2012
The National Bank of Poland wishes to communicate that on 20 April 2012 Switzerland and Poland (represented by the Minister of Finance and the President of the NBP) signed a Memorandum of Understanding on new terms and conditions of cooperation and leadership of the constituency at the International Monetary Fund and the World Bank group.
The MoU chiefly concerns sharing the position of the Executive Director in the IMF constituency on an equal rotation basis. Such a rotation will take place every two years. In future, this principle will also apply to the position of the Executive Director of the constituency at the World Bank.
The MoU reflects changes in the Bretton Woods institutions, i.e. the evolution of the global economy towards a growing role of the developing economies and emerging markets.
For the changes to the IMF constituency to become effective, the IMF members must approve the governance reform – in line with the IMF Board of Governors’ resolution No. 66-2. The reforms also imply that Poland increases its quota and voting power.
The MoU reflects the growing importance of Poland on the international arena.
At present, in both of those institutions Switzerland holds a permanent position of the Executive Director, whereas Poland is represented by the Alternate Executive Director.