The Government of Singapore has reportedly announced plans to contribute approximately US$20.57 million (S$27.69 million) towards international efforts to aid numerous low-income nations in dealing with the economic impact of the coronavirus pandemic.
As per the statement of the Monetary Authority of Singapore, this is likely to be done through the IMF (International Monetary Fund), pending approval from the Parliament on 5th April.
Singapore hopes to support three IMF initiatives. These are namely, the Trust for Special PRG (Poverty Reduction and Growth) Operations for the HIPC (highly indebted poor countries), Covid-19 Crisis Capacity Development Initiative, as well as the CCRT (Catastrophe Containment and Relief Trust).
MAS stated that Singapore has a keen interest in supporting the overall economic recovery of the globe from the pandemic. Alongside contributions of other member countries, the grant contributions of Singapore in response to the request by IMF also showcases MAS’s support for collective global action to aid the most vulnerable low-income countries.
The contributions of the Republic to the IMF’s Covid-19 Crisis Capacity Development Initiative as well as CCRT will stand at US$2 million and US$17.6 million and will be drawn from the MAS' OFR (Official Foreign Reserves).
Additionally, the MAS stated that the amounts that Singapore plans to contribute are proportionate with the IMF quota share of the Republic, a metric which is known to decide the maximum amount of financial resources that a member is required to pay, showing the relative position of the country in the global economy.
Singapore will also provide a grant of approximately US$970,000 to the Trust for Special Poverty Reduction & Growth Operations for HIPC. This would mainly support the International Monetary Fund’s financial relief package of over US$344 million to address Somalia's debt.
MAS stated that the International Monetary Fund has assessed that the external debt of Somalia is unmaintainable, requiring urgent help to clear its protracted arrears.
The grant fund of Singapore would come entirely from its current resources from other International Monetary Fund accounts and would not withdraw from the OFR.