Saturday, April 21, 2012

Singapore pledges to make US$4b loan to IMF

SINGAPORE : Singapore has pledged to make a US$4 billion bilateral loan to the International Monetary Fund (IMF), joining the international effort to strengthen the IMF's targeted war chest of more than US$400 billion to tackle the eurozone debt crisis.

The Monetary Authority of Singapore (MAS) said this contribution will be made by way of contingent loans to the IMF, and not directly to countries borrowing from the IMF.

MAS added that this bilateral loan will remain part of Singapore's Official Foreign Reserves.

Singapore's commitment of US$4 billion forms 1.6 per cent of its total official foreign reserves, which stood at US$243.6 billion (S$306.3 billion) as at March this year, according to figures from the Singapore central bank's website.

Singapore joins three other countries that have announced their commitment towards the IMF, at the IMFC/G20 meetings held in Washington.

Australia will contribute US$7 billion, while Korea and the United Kingdom will be pledging US$15 billion each.

This will be by way of contingent loans or note purchase agreements.

In a joint statement, the four nations said: "The IMF plays an essential role in supporting stability in the global economy, from which we all benefit. These resources will increase the lending capacity of the IMF and enable it to play its systemic role for the benefit of all members."

MAS said that should these additional resources be used, the participating countries believe they will support well-designed IMF programmes with appropriate conditionality and risk mitigating measures would apply.

- CNA/ms

View the original article here

Source From Channel News Asia

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