Principality of Liechtenstein Joins IMF

The Principality of Liechtenstein, a German-speaking, 25 km-long Principality between Austria and Switzerland, became the 191^st member of the International Monetary Fund (IMF) on after its Prime Minister Daniel Risch signed the Fund’s Articles of Agreement during a ceremony in Washington D.C. on Monday.

Liechtenstein applied for the IMF membership in May 2023 and subsequently, an IMF team visited Vaduz during November 27-December 8 in 2023. The principality’s decision to join the IMF was confirmed by a majority in a national referendum, by a margin of 55.8% to 44.2%, conducted on 22 September 2024. The initial quota for Liechtenstein is about $134.7 million.

Membership was backed by Hereditary Prince of Liechtenstein Prince Alois, the acting head of state and heir to the throne, who said earlier this month it would underpin the financial stability of Liechtenstein and provide access to liquidity in the event of any emergency.

According to calculations made by the Government, the costs incurred for membership in the IMF would amount to approximately $578,000 per year and are made up exclusively of administrative costs incurred as a result of participation in the Fund.

In addition, a quota is determined for each member country, and part of this quota is deposited with the IMF. However, this money does not represent a membership fee or the like, but it constitutes an interest-bearing foreign exchange reserve which can be used by the respective country in a situation of crisis at any time.

IMF to Support Sustainable Growth

After the signing ceremony, IMF Managing Director Kristalina Georgieva met with Prime Minister Daniel Risch at IMF headquarters and discussed issues of cooperation.

In a statement, Georgieva said that she was delighted to welcome Liechtenstein into the global IMF community and this membership signifies Liechtenstein’s commitment to upholding the highest standards of economic policy and cooperation on the international stage.

The IMF will work closely with the authorities to support Liechtenstein’s efforts toward sustainable growth and further integration into the global economy, she said.

“Liechtenstein has joined the IMF at a time when our members and the global economy are navigating greater uncertainty and long-term challenges such as economic fragmentation and climate change. This accession reaffirms the important role entrusted to the IMF in fostering global economic cooperation and stability. Together, we will build a more inclusive and sustainable economic future for all members,” she added.

Risch said that his government was pleased that Liechtenstein was able to join the IMF on October 21.

As a small country with limited administrative resources, Liechtenstein reflect carefully before joining global organisations, evaluating not only the consequences and benefits of what the organisation can bring to the country, but also what it can bring to the organisation, he said.

Risch added: “Liechtenstein will be a committed and dedicated member of the Fund. We are looking forward to engaging constructively to advance international economic resilience and stability.”