SINGAPORE: Singapore will raise its quota with the International Monetary Fund (IMF) to 1.95 billion Special Drawing Rights (SDR) (US$2.63 billion).
At the same time, the country will reduce its loan commitments to the IMF by 1.41 billion SDR (around US$1.91 billion), according to the Monetary Authority of Singapore (MAS).
According to the Singapore Business Review, these changes are part of a larger effort to strengthen the IMF’s ability to maintain global economic stability.
This follows the IMF’s aim to increase its member countries’ capital contributions while reducing its reliance on borrowing. For these changes to happen, at least 85% of IMF members must agree to their quota increases.
Along with increasing its quota, Singapore will lower its commitment to the New Arrangements to Borrow (NAB) programme, which allows the IMF to borrow funds from its members.
Singapore’s current NAB commitment of SDR 1.30 billion (US$1.86 billion) will be reduced to SDR 1.09 billion (US$1.47 billion).
Singapore will also renew its loan commitment under the Bilateral Borrowing Agreement (BA) with the IMF, which is set to last until Dec 31, 2027.
This agreement will stay at the current maximum of SDR 1.20 billion (US$1.72 billion). Once the quota increases are in place, the IMF will phase out the BAs with member countries.
The increase in Singapore’s IMF quota will not affect its Official Foreign Reserves.
This change is part of a broader global adjustment, with all IMF member countries receiving quota increases based on their current levels.
The total increase in member countries’ quotas is SDR 238.6 billion (US$322.8 billion). /TISG
Featured image by Depositphotos