"Today I am pleased to announce that Andorra has applied to become the 190th member of the International Monetary Fund," said the Managing Director of the IMF Kristalina Georgieva on her Twitter account.
The desire of the Government of Andorra to initiate the process of joining the IMF, an institution created to promote financial stability and international monetary cooperation, has recently been made public and official.
This will start a process that will last about a year, involving the joint efforts of the IMF technical teams and the Andorran executive authorities. This will allow, among others, to set the corresponding Andorran quota as well as to gather the statistical data provided by the country.
Why is it convenient for Andorra to join the IMF?
The fact that almost all the countries in the world are now part of the IMF highlights the influence and importance of this institution on an international scale. Membership in this institution guarantees a number of benefits for countries that would otherwise find expensive or difficult to access.
As the central institution of the international monetary system, it seeks to avoid economic crises by advising and proposing measures to member countries.
The IMF offers aid funds to member countries that may need funding occasionally to overcome imbalances in their balance of payments.
Its main funding is paid by the contributions of each of the 189 participating countries. Contributions mainly depend on the size and weight of the economies of the countries in relation to the world economy.
The Andorran banks have already celebrated the beginning of the process through a statement by the Andorran Banking Association (Andorran Banking) that says "Andorra’s entry in the IMF will improve international cooperation, access to technical assistance and training, for example in the areas of finance and statistics, and the possibility of receiving funds if needed."
At Integral Serveis 21, we share this opinion: Andorra’s entry in the IMF will improve the international reputation and ratings of the country.
In the coming days and according to the bylaws of the organization, the IMF Executive Committee will study the application and submit a recommendation to the Fund's Governing Council in the form of a resolution.