On 15 November 2024, the Monetary Authority of Singapore announced that Singapore will adjust its contributions to the International Monetary Fund to support global efforts aimed at strengthening the institution’s capacity to safeguard international economic and financial stability. This decision follows the International Monetary Fund’s recent review of its resource base and underscores Singapore’s commitment to multilateral cooperation.
The International Monetary Fund has concluded a comprehensive review of its resource base, resulting in a restructuring of its funding framework. The institution will increase member countries’ permanent quota resources, which are capital subscriptions to the International Monetary Fund. Simultaneously, the reliance on temporary borrowed resources, which were introduced during past financial crises, will be reduced. The increase in quotas will only take effect once members holding at least 85 percent of the total quotas approve their respective adjustments.
Under this new framework, the total increase in member countries’ quotas will amount to US$ 238.6 billion Special Drawing Rights, equivalent to US$ 322.8 billion. A member’s quota determines its voting power, access to International Monetary Fund financing, share in Special Drawing Rights allocations, and the extent of its commitment to finance the institution’s lending programs.
Singapore has committed to accepting its allocated increase in quota, which amounts to US$ 1.95 billion Special Drawing Rights, equivalent to US$ 2.63 billion. At the same time, Singapore will reduce its loan commitments to the International Monetary Fund by US$ 1.41 billion Special Drawing Rights, equivalent to US$ 1.91 billion. These changes will not have any net impact on Singapore’s Official Foreign Reserves.
In line with the International Monetary Fund’s initiative to scale back temporary borrowed resources, Singapore will make adjustments to its commitments under the following agreements:
- New Arrangements to Borrow: Singapore will reduce its loan commitment under the New Arrangements to Borrow from the current level of US$ 1.30 billion Special Drawing Rights, equivalent to 1.86 billion, to a maximum of US$ 1.09 billion Special Drawing Rights, equivalent to US$ 1.47 billion. This reduction will take effect when the quota increases are implemented.
- Bilateral Borrowing Agreement: Singapore will renew its existing Bilateral Borrowing Agreement with the International Monetary Fund until 31 December 2027. This agreement will maintain a maximum loan commitment of US$ 1.20 billion Special Drawing Rights, equivalent to US$ 1.72 billion. The Bilateral Borrowing Agreements will be phased out after the quota increases take effect.
Singapore has been a consistent contributor to the International Monetary Fund’s resources. The country has participated in the New Arrangements to Borrow since their inception in 1998 and has been a contributor to the Bilateral Borrowing Agreements since 2012. Singapore’s commitment to supporting global economic stability and reflect its responsiveness to evolving international financial needs and Singapore’s role in the international financial system, ensuring that the International Monetary Fund has the resources required to address future challenges and uphold global stability.
