Singapore pledges to renew IMF loan commitments

SINGAPORE will renew its loan commitments totalling US$3.58 billion to the International Monetary Fund (IMF).

In a Wednesday press statement, the Monetary Authority of Singapore (MAS) said 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 the 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 the BAs are between the IMF and 40 countries.

Singapore has been a contributor to the NAB since its inception in 1998, and to the BA since 2012.

Singapore's renewal of loan agreements comes as part of the city-state's efforts to support multilateral efforts to strengthen the capacity of the IMF.

By helping to boost the IMF's resources, the IMF will be able to effectively play its role in safeguarding global economic and financial stability in response to the Covid-19 pandemic, said MAS.

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The authority 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 foundation.

IMF will only draw upon the loan commitments 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.