The Monetary Authority of Singapore (MAS) announced today that Singapore will renew its loan commitment to the International Monetary Fund (IMF)’s New Arrangements to Borrow (NAB)
2 The renewal of Singapore’s existing loan commitment to the IMF is for the period up to 31 December 2030 and subject to a maximum of Special Drawing Rights (SDR)
3 Singapore’s loan commitments to the IMF take the form of contingent loans to the IMF and are not made directly to countries borrowing from the IMF. The IMF will only draw upon the loan commitments if its other lending resources are significantly reduced. The loans have no implications for the Government’s budget and also do not reduce the Official Foreign Reserves (OFR) managed by MAS. They remain part of Singapore’s OFR in the event that Singapore’s commitment is drawn upon.
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[1] The NAB allow the IMF to borrow from the 40 NAB participants when available quota resources are low relative to member countries’ demand for IMF financial support. After quotas, the NAB acts as a second line of defence for the IMF to supplement its resources.
[2] The SDR is an interest-bearing international reserve asset created by the IMF in 1969 to supplement other reserve assets of member countries. The SDR is currently based on a basket of international currencies comprising the US dollar, Japanese yen, Euro, Pound sterling and Chinese renminbi.
