International Monetary Fund: Federal Council requests SNB loan for poorer countries
Bern, 13.04.2016 - The Federal Council has asked the Swiss National Bank (SNB) to grant a loan of 500 million special drawing rights (about CHF 700 million) to the International Monetary Fund's (IMF) Poverty Reduction and Growth Trust (PRGT). The IMF grants concessional loans to its lowest-income member countries through the PRGT, which should facilitate structural adjustments and pave the way for sustainable economic growth in these countries.
To continue to ensure its lending capacity for poorer countries after 2016, the IMF has asked Switzerland to make another contribution to the increase in the PRGT loan account. The last time it was asked to make such a contribution was in 2011. The IMF's loan programmes are an effective tool for strengthening the macroeconomic framework conditions in developing countries. The IMF currently grants repayable loans via the PRGT within the framework of programmes in 20 poorer countries.
Under the Monetary Assistance Act, the Federal Council must first submit a request to the SNB to take on loans granted with a federal guarantee. Once it receives the SNB's consent, the Federal Council can adopt a dispatch to guarantee the loan and submit it to Parliament.
Switzerland has been participating in the IMF's facilities for developing countries since 1988. As an open economy with an important financial centre and its own currency, it is in Switzerland's interests to help ensure a global economic and financial system that is as integrated and developed as possible. By providing monetary assistance, Switzerland also protects its standing in the international financial system and can present its position on issues concerning financial stability in a convincing and effective way in international bodies.
Address for enquiries
Beat Werder, Head of Communications, State Secretariat for International Financial Matters SIF
Tel. +41 58 469 79 47, beat.werder@sif.admin.ch
Publisher
The Federal Council
https://www.admin.ch/gov/en/start.html
Federal Department of Finance
https://www.efd.admin.ch/efd/en/home.html
