Montenegro becomes IMF's 185th member

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The former Yugoslav republic of Montenegro joined the IMF on January 18, becoming the institution's 185th member. The Articles of Agreement were signed in Washington, D.C., by Ljubi-a Krgovic', President of the Council of the Central Bank of Montenegro. Montenegro's Finance Minister, Igor Luksic, attended the signing ceremony.

The IMF was founded in 1944 and began with 45 member countries.

IMF Managing Director Rodrigo de Rato said that Montenegro's membership marked "another decisive step in the process of nation building. Montenegro is claiming its place as a respected member of the global community of nations, and it is demonstrating its commitment to meet the responsibilities and reap the benefits of international cooperation."

Montenegro's initial quota in the IMF is 27.5 million Special Drawing Rights (SDRs) (about $41.2 million). With the admission of Montenegro, total members' quotas in the IMF rise to SDR 216.75 billion (about $325.01 billion).

Each member country is assigned a quota, based broadly on its relative size in the world economy. A member's quota determines its maximum financial commitment to the IMF and its voting power and also has a bearing on its access to IMF financing.

IMF working on Lebanon package

The IMF is working with Lebanese authorities to assemble an Emergency Post-Conflict Assistance (EPCA) program to support the strife-torn nation's efforts to deal with its massive debt, rebuild and reform its economy, and undertake sound macroeconomic policies to maintain financial stability.

The IMF's effort comes as major donor countries pledged on January 25 in Paris to provide about $7.6 billion in aid to help Lebanon rebuild following a month-long war last year between the Lebanese group Hezbollah and Israel, fought on Lebanese soil.

Under the EPCA program, the IMF works closely with donor organizations, such as the World Bank, and donor countries to provide technical assistance, economic policy advice, and financial assistance.

The 2006 war led to a substantial setback on the economic front. According to official estimates, infrastructure damage was around $2.8 billion. Real GDP, which was expected to grow by 5-6 percent in 2006, is estimated to have contracted by around 5 percent, which implies a loss of income of...