Swiss Council of States Approves Contribution to IMF Sustainability Fund
Published: Monday, Sep 11th 2023, 16:00
Updated At: Friday, Oct 13th 2023, 14:12
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The Swiss Federal Council has proposed that Switzerland contribute 620 million Swiss francs to the International Monetary Fund's (IMF) Trust Fund for Resilience and Sustainability. The Swiss Council of States has approved a corresponding loan commitment with 42 votes in favour and no abstentions. The National Council will now consider the proposal. The Trust Fund will enable the IMF to provide loans to developing and emerging countries for macroeconomic reforms, climate change mitigation and pandemic preparedness and response. The Swiss National Bank will provide a loan of 500 million Special Drawing Rights (SDRs) with a ten-year term. This corresponds to approximately 620 million Swiss francs. The Federal Government will guarantee the loan up to 750 million francs, including a reserve of 130 million francs to cover any potential exchange rate fluctuations. The Federal Council considers the financial risks to the Federal Government to be low and there will be no direct impact on the Federal Budget. To date, there has never been a default on an IMF loan.nnnnnnnnnnnnnnnnnnnnnnnnnn
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