Singapore, 15 November 2024… The Monetary Authority of Singapore (MAS) announced today that Singapore will make changes to its contributions to the International Monetary Fund (IMF), in support of multilateral efforts to strengthen the IMF’s capacity to safeguard global economic and financial stability.

2. Following the IMF’s recently completed review of its resource base, the IMF will increase its permanent quota resources (member countries’ capital subscription into the IMF)A member’s quota determines its relative voting power at the IMF, access to IMF financing, share in the allocation of SDRs, and the magnitude of its commitment to finance the IMF’s lending programmes., while reducing its reliance on temporary borrowed resources from its members, which were introduced following previous financial crises. The quota increase will only take effect when members holding at least 85 per cent of the IMF’s quotas have consented to their own allocated increases.

3. All member countries have been allocated increases in their IMF quotas in proportion to their current quota levels. The overall increase in member countries’ quotas amount to SDRThe Special Drawing Right (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. 238.6 billion (USD 322.8 billion).  Singapore will accept the allocated increase of its quota amounting to SDR 1.95 billion (USD 2.63 billion), while reducing its loan commitments to the IMF by SDR 1.41 billion (USD 1.91 billion). Singapore’s increased quota does not have any net impact on its Official Foreign Reserves.

4. In line with scaling back the IMF’s temporary borrowed resources, Singapore will make changes to our loan commitmentsSingapore’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 will remain part of Singapore’s Official Foreign Reserves in the event that Singapore’s commitment is drawn upon. to the IMF under the following agreements:

(a) New Arrangements to Borrow (NAB): Singapore will reduce its loan commitment to the NAB from the current SDR 1.30 billion (USD 1.86 billion) to a maximum of SDR 1.09 billion (USD 1.47 billion). This reduction will take place once the quota increase takes effect.

(b) Bilateral Borrowing Agreement (BA): To maintain the IMF’s lending capacity pending members’ consent to the quota increase, the term of the existing BAs will be extended. Singapore will renew our loan commitment under the BA entered into with the IMF to 31 December 2027, subject to the current maximum of SDR 1.20 billion (USD 1.72 billion). The IMF’s BAs with member countries will be phased out when the quota increase becomes effective.

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

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