By Mustafa Shafawi, 938LIVE |
Posted: 07 September 2009 2145 hrs
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SINGAPORE: The Monetary Authority of Singapore (MAS) said
the country will significantly expand its contribution to the
resources of the International Monetary Fund (IMF).
In a statement, MAS said Singapore will contribute US$2 billion in
a contingent loan to the IMF under its New Arrangements to Borrow
(NAB).
This represents an increase of US$1.5 billion from Singapore's
existing contribution under the NAB.
The NAB is a credit line to the IMF, set up by 26 members and
institutions following the Mexican financial crisis in 1994, that
allows the IMF to borrow additional sums if needed.
The arrangements have been renewed twice, most recently in November
2007, for a period of five years from November 2008.
The NAB has been activated once to finance a Stand-by Arrangement
for Brazil in December 1998, when the IMF called on funding of
about US$13 billion, of which US$4.1 billion was used.
MAS managing director Heng Swee Keat said Singapore's decision
demonstrates its long-standing commitment to a well-resourced and
effective IMF.
He added: "The IMF plays a key role in helping countries respond to
unanticipated stresses in their external payments and in
maintaining global financial stability."
Singapore has been a contributor to the NAB since its inception in
1998. - CNA/vm
