The Monetary Authority of Singapore (MAS) has announced that Singapore will renew its loan commitment to the International Monetary Fund’s (IMF) New Arrangements to Borrow (NAB), extending it until 31 December 2030. This move aims to bolster the IMF’s capacity to maintain global economic and financial stability, with a maximum commitment of Special Drawing Rights (SDR) 1,297.1 million, equivalent to US$1,762.8m.
Singapore has been a participant in the NAB since its inception in 1998. The renewed commitment involves contingent loans to the IMF, which will only be drawn upon if the IMF’s other resources are significantly depleted. Importantly, these loans do not impact the Singapore Government’s budget or reduce the Official Foreign Reserves (OFR) managed by MAS. Instead, they remain part of Singapore’s OFR unless the commitment is activated.
The NAB serves as a secondary line of defence for the IMF, supplementing its resources when available quota resources are insufficient to meet member countries’ financial support demands. The SDR, an international reserve asset created by the IMF, underpins this arrangement, drawing on a basket of major international currencies.
This renewal underscores Singapore’s ongoing commitment to supporting multilateral efforts in safeguarding global financial stability. As the world continues to navigate economic uncertainties, such commitments are crucial in ensuring the IMF can respond effectively to financial crises.
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