The International Monetary Fund (IMF) is expected to complete the process of a new allocation of Special Drawing Rights (SDRs) by the end of August, spokesman Gerry Rice said.
The IMF executive board on Friday discussed a proposal for a new SDRs allocation of $650 billion, “the largest issuance in the IMF’s history” aimed at helping its membership, especially the most vulnerable, overcome the COVID-19 crisis, Rice said in a statement at the end of the meeting.
“The board discussion is another step in the process toward a new SDRs allocation which we expect to be completed by the end of August,” Rice said.
During its spring meetings – held in cooperation with the World Bank – in April, the International Monetary and Finance Committee (IMFC) called on the IMF to make a comprehensive proposal on a new SDR general allocation of $650 billion to help meet the long-term global need to supplement reserves, while enhancing transparency and accountability in the reporting and the use of SDRs.
The IMFC also called on the IMF to work with its members to continue exploring ways for voluntary post-allocation channeling of SDRs to support members’ recovery efforts.
Since the onset of the pandemic, the IMF has extended over $110 billion to 86 countries worldwide through various finance instruments to help in addressing the harsh impacts of the pandemic.
On Wednesday, the IMF announced the completion of Egypt’s 12-month stand-by agreement (SBA) programme, through which Egypt has secured a loan of about $5.2 billion to support its second wave of the economic reforms.
Based on the final review of the programme, Egypt is to obtain about $ 1.7 billion as the third tranche of the loan.