On July 11, 2012 Austria, Belarus, the Czech Republic, Hungary, Kosovo, the Slovak Republic, Slovenia and Turkey established the Central and Eastern European constituency in the International Monetary Fund. The constituency agreement was signed by the Ministers of Finance, Central Bank Governors, and by high-level officials representing the constituency in Vienna in the presence of the President of the Federal Republic of Austria. This constituency will elect one Executive Director for the Executive Board of the IMF as of November 2012.
After an interim two-year period in which Austria will represent the constituency, the position of the Executive Director in the IMF Executive Board as well as the constituency’s seat in the International Monetary and Financial Committee will be filled on the basis of an eight-year rotation scheme. This position will be assigned exclusively to emerging market economies of the Constituency. The rotation scheme will redistribute one chair in the IMF’s Executive Board from the advanced European countries to emerging market countries. It will therefore significantly contribute to the reduction of two advanced European chairs in the IMF’s Executive Board as outlined in the 2010 governance reform of the IMF.
The creation of this Central and Eastern European Constituency marks a historical milestone as it reestablishes the dynamic region of Central and Eastern Europe on the map of the IMF Executive Board. The constituency aims at being a strong supporter of multilateral cooperation within the IMF and an influential voice of Central and Eastern Europe in the IMF. The presence of Turkey will also give the constituency a strong voice in the G20.
Vienna, July 11, 2012