Singapore To Join International Efforts To Support IMF’s Initiatives For Vulnerable Low-Income Countries Impacted By COVID-19

The Monetary Authority of Singapore (MAS) announced today that Singapore intends to join international efforts to enhance the capacity of the International Monetary Fund (IMF) to assist vulnerable low-income countries in dealing with the economic fallout from the COVID-19 pandemic. This will enable the IMF to support the surge in requests for financial assistance, from these countries.

2.     Subject to Parliament’s approval [1] on 5 April, Singapore will provide grants totalling US$20.57 million to the following:

• IMF’s Catastrophe Containment and Relief Trust;
• IMF’s COVID-19 Crisis Capacity Development Initiative; and
• IMF’s Trust for Special Poverty Reduction and Growth Operations for the Heavily Indebted Poor Countries.

3.     Singapore has a strong interest in supporting the global economic recovery from the ongoing COVID-19 pandemic. Alongside other member countries’ contributions, Singapore’s grant contributions in response to the IMF’s request also demonstrates our support for collective global action to help the most vulnerable countries.

Catastrophe Containment and Relief Trust (CCRT)

4.     Established in 2015, the CCRT provides debt relief to the IMF’s poorest and most vulnerable members in the event of a global health pandemic or natural catastrophe. The CCRT is in need of a US$1.4 billion replenishment to help strengthen healthcare systems in low-income countries. Singapore’s grant to the CCRT at US$17.6 million is commensurate with Singapore’s IMF quota [2] share. Singapore’s grant to the CCRT will be drawn from MAS’ Official Foreign Reserves (OFR).

COVID-19 Crisis Capacity Development Initiative (CCCDI)

5.     The CCCDI targets the urgent capacity development needs of countries affected by the COVID-19 pandemic, and is expected to raise US$100 million. At US$2 million, Singapore’s grant to the CCCDI is commensurately sized, relative to the contributions from larger countries, and will be drawn from MAS’ OFR.

Trust for Special Poverty Reduction and Growth Operations for the Heavily Indebted Poor Countries (PRG-HIPC Trust)

6.     Singapore will also provide a US$0.97 million [3] grant to the PRG-HIPC Trust, to support the IMF’s US$344 million [4] financing package for Somalia’s debt relief. The IMF has assessed that Somalia’s external debt is unsustainable and it requires urgent assistance to clear its prolonged arrears. Singapore’s grant to the PRG-HIPC Trust will come entirely from Singapore’s share of existing resources in other IMF accounts, and will not impact the size of Singapore’s OFR. 

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1. [1] The Bretton Woods Agreements Act enables MAS to make grants to the IMF as part of international efforts to assist low-income countries. These grants are subject to Parliament’s approval.