Singapore commits $34.7 million to IMF aid for vulnerable states, including Sudan
Singapore is preparing to channel $34.7 million to the International Monetary Fund to help economically vulnerable countries weather shocks, including a dedicated contribution to support debt relief for Sudan.
The Monetary Authority of Singapore (MAS) received parliamentary approval on February 4 to join broader international efforts to strengthen the IMF’s support for low-income and heavily indebted states.
Singapore will provide grants totalling Special Drawing Rights (SDR) 25.48 million, equivalent to about $34.7 million, to two IMF facilities focused on poverty reduction and debt relief.
The largest share — SDR 21 million, or about US$28.6 million — will go to the IMF’s Poverty Reduction and Growth Trust (PRGT), which offers concessional loans to low-income countries facing fiscal stress and balance-of-payments problems.
A further SDR 4.48 million, equivalent to around $6.1 million, will be directed to the Trust for Special Poverty Reduction and Growth Operations for the Heavily Indebted Poor Countries (PRG-HIPC Trust) to support the IMF’s debt relief efforts for Sudan.
MAS said Singapore’s contribution to the PRGT will be drawn from its Official Foreign Reserves, while the Sudan-related grant will come from Singapore’s existing resources held in IMF accounts and will not affect reserve levels.
The move follows a 2021 IMF allocation of SDR 650 billion to boost global liquidity during the pandemic. Singapore received SDR 3.73 billion from that allocation, despite not requiring the additional reserves, and is now redirecting part of its share to countries in greater need.
MAS said the contributions reflect Singapore’s interest, as a small and highly open economy, in supporting global financial stability and collective action through the IMF. The amounts are aligned with Singapore’s quota share at the Fund.
Beyond grants, Singapore will also channel SDR 746 million — about US$1.01 billion — to the IMF’s Resilience and Sustainability Trust in the form of a loan, supporting longer-term financing for vulnerable countries facing challenges such as climate change and pandemic preparedness.
MAS said the combined measures underscore Singapore’s support for multilateral efforts to stabilise fragile economies, at a time when debt pressures and external shocks continue to weigh heavily on the world’s poorest countries.
This story is written and edited by the Global South World team, you can contact us here.
