Press releases
11. 7. 2012
  • The CNB

Czech Republic joins new IMF constituency of Central and Eastern European countries

The Czech Republic has become a member of a new International Monetary Fund constituency comprising Central and Eastern European countries. Under an agreement signed today, the Czech Republic will have the possibility of appointing an Executive Director of the IMF Executive Board for only the second time in history. The former Czechoslovakia – one of the founding countries of the IMF – had an Executive Director in 1946.

The constituency agreement between Central and Eastern European countries in the IMF was signed by ministers and central bank governors of the Czech Republic, Austria, Belarus, Hungary, Kosovo, Slovakia, Slovenia and Turkey in Hofburg, Vienna. First Deputy Prime Minister and Minister of Foreign Affairs Karel Schwarzenberg and Governor of the Czech National Bank Miroslav Singer signed the agreement on behalf of the Czech Republic.

“The possibility of appointing an Executive Director for two years under the agreed rotation scheme is an important achievement and acknowledgement of our country as a dynamic and stable economy in the European region and of its importance for the International Monetary Fund,” said CNB Governor Miroslav Singer.

The agreement was signed in response to the IMF governance reform, under which the representation of emerging market countries is to be increased by two Executive Directors at the expense of advanced European countries. The aim of the reform is to make sure that IMF governance better reflects the changing economic power and development potential of emerging economies and to reduce the current dominant position of advanced economies in the IMF’s governance and decision-making.

The creation of a Central European constituency marks a historical milestone as it enables the dynamic Central and Eastern European region to be represented directly in the governance structure. The IMF Executive Board consists of 24 Executive Directors, who represent the shareholders and supervise the work of the IMF, play a pivotal role in formulating its policy and influence the decisions of this international organisation.

Tomáš Zimmermann, CNB Communications Department