Andorra becomes the 190th member of the IMF
Andorra is now an official member of the International Monetary Fund.
Last September, the Consell General (the Andorran parliament) approved the submission of its application to become a member of the IMF. Although negotiations began in January of this year, Andorra’s relationship with this institution is not new. Last Friday, October 16th, the process culminated with the accession of the Principality to the Fund.
Andorra’s accession to the International Monetary Fund
Becoming part of the IMF is important to Andorra for various reasons and will provide several advantages. But it is also being called for by other institutions, such as the European Parliament and the rating agencies, in relation to the association agreement between the country and the European Union. It’s also been requested by the last legislature of the commission on vigilance and risk prevention for financial stability of the Consell General.
Andorra is the 190th country to join the International Monetary Fund. The cost of being part of this institution is 4,600 euros per year and a deposit of 260,000 euros. Due to the similarities of its financial systems and the opportunities it offers, the principality has asked to be in the fourth constituency, alongside countries such as Luxembourg, Holland and Belgium.
Advantages of joining the IMF
For a country like Andorra, which wants to open up to new markets and attract foreign capital and talent, being a member of the International Monetary Fund is an essential requirement. The advantages it will provide include:
– Solvency and credibility: given that the rules on transparency and international information of the member states must be observed.
– Improved international status for the country.
– Access to assistance and training in the field of finance and statistics.
– If required, access to financial assistance from the IMF.
– Advice on achieving greater economic stability and prosperity for the country.
Read this article to find out more about the route Andorra has gone through since January towards becoming a member of the IMF.