“With this step, the membership has once again confirmed its commitment to modernizing the IMF and its operations. The ratification marks the completion of a key component of overhauling the IMF’s framework, including its financial structure,” IMF Managing Director Dominique Strauss-Kahn said. “Together with the quota and voice reforms that are progressing, the overhaul of the IMF’s financial operations further reinforces the legitimacy of the IMF. I thank the membership for this vote of confidence in the institution's future.'

The reform of the IMF’s income model is part of the institution’s overall governance reforms that were decided in 2008 to enhance the efficiency and effectiveness of the Fund’s operations and structure and strengthen its legitimacy. A broader investment mandate will enable the IMF to manage its operational finances more effectively and independently of its lending to member countries.

The new amendment aims to provide flexibility for the Fund to enhance the average expected return on its investments and adapt its investment strategy over time. The IMF’s investment policies will evolve gradually, and will reflect the public nature of the funds to be invested and include safeguards to ensure that the broadened investment authority does not lead to actual or perceived conflicts of interest.