MAS to grant US$20.6m to IMF's Covid-19 support initiatives for vulnerable countries

THE Monetary Authority of Singapore (MAS) announced on Wednesday that Singapore will join international efforts to support the International Monetary Fund (IMF) in assisting low-income countries dealing with the economic fallout from the Covid-19 pandemic. This will help the IMF fund the surge in financial assistance requests.

Subject to Parliament's approval on April 5, Singapore will provide grants totalling nearly US$20.6 million to three initiatives, namely the Catastrophe Containment and Relief Trust (CCRT), the Covid-19 Crisis Capacity Development Initiative (CCCDI) and the Trust for Special Poverty Reduction and Growth Operations for the Heavily Indebted Poor Countries (PRG-HIPC Trust).

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. It is in need of a US$1.4 billion replenishment to help strengthen healthcare systems in low-income countries. Meanwhile the CCCDI targets the urgent capacity development needs of countries affected by the Covid-19 pandemic.

According to MAS, Singapore's grants of US$17.6 million to the CCRT and US$2 million to the CCCDI are commensurately sized, and will both be drawn from MAS's official foreign reserve.

Singapore will also provide a US$970,000 grant to the PRG-HIPC Trust, to support the IMF's US$344 million financing package for Somalia's debt relief. The amount will come entirely from Singapore's share of existing resources in other IMF accounts, and will not impact the size of Singapore's OFR.

MAS said in the media statement: "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," MAS added.