The IMF Board of Governors approved a general SDR allocation equivalent to $650 billion, which will enable Moldova to receive special financing totaling $236 million by the end of August.
In particular, the Board of Governors of the International Monetary Fund approved on 2 August a general allocation of Special Drawing Rights (SDRs) equivalent to $650 billion (approximately SDR 456 billion) to supplement the world's liquidity resources. As stated by IMF Managing Director Kristalina Georgieva, this historic decision is the largest SDR allocation in IMF history and a boost to the global economy during an unprecedented crisis. The SDR allocation will serve the benefit of all member states, help meet long-term global reserve requirements, build confidence, and help enhance the resilience and stability of the global economy, she said. “It will especially help our most vulnerable Member States struggling to cope with the aftermath of the COVID-19 crisis,” said Kristalina Georgieva. The general SDR allocation will take effect on 23 August. SDRs will be transferred to IMF member countries in proportion to their quotas in the fund. At the same time, about $275 billion (approximately SDR 193 billion) from the new distribution will go to emerging market and developing countries, including low-income countries. “We will also continue to actively work with our member states to find acceptable ways of voluntarily transferring SDRs from richer members to poorer and more vulnerable members to help them recover from the pandemic and achieve stable and sustainable growth.” said Kristalina Georgieva. One of the main options is to voluntarily redistribute some of their SDRs by externally strong members to increase lending to low-income countries through the IMF's Poverty Reduction and Growth Trust (PRGT). Concessional support through the PRGT is currently provided on an interest-free basis. The IMF is also exploring other options to help poorer and more vulnerable countries rebuild their economies. Consideration could be given to establishing a new Resilience and Long-term Sustainability Trust Fund to promote stronger and more sustainable growth over the medium term. Earlier, Cristalina Georgieva, Managing Director of the International Monetary Fund, during an online conversation with Moldovan President Maia Sandu, said that Moldova could receive from the IMF special financing totaling $236 million by the end of August 2021. // 03.08.2021 - InfoMarket.
