Singapore to renew IMF loan commitments totalling $4.7b
Sign up now: Get ST's newsletters delivered to your inbox
Singapore will renew its loan commitments totalling US$3.58 billion (S$4.7 billion) to the International Monetary Fund (IMF).
The Monetary Authority of Singapore (MAS) said in a media statement yesterday that this will be accomplished under the New Arrangements to Borrow (NAB) agreement with a US$1.86 billion loan for 2021-2025, as well as a Bilateral Borrowing Agreement (BA) with a US$1.72 billion loan for 2021-2024.
The NAB is a set of multilateral credit arrangements between the IMF and 38 member countries or institutions, while BAs are between the IMF and 40 countries.
Singapore has been a contributor to the NAB since its inception in 1998, and to its BA since 2012.
Singapore's renewal of the loan agreements comes as part of its bid to support multilateral efforts to strengthen the capacity of the IMF.
By boosting the IMF's resources, Singapore will help the fund to effectively play its role in safeguarding global economic and financial stability in response to the Covid-19 pandemic, said MAS.
The MAS expects the renewed BA commitments from IMF members, including Singapore, to reach a total of US$188.8 billion.
The loan commitments take the form of contingent loans to the IMF, and are not made directly to countries borrowing from the fund. The IMF will draw upon the loan commitments only if its other existing resources are significantly reduced.
In the event that Singapore's commitment is drawn upon, the loans will remain part of the Republic's official foreign reserves.
THE BUSINESS TIMES