Passing the Hat Around
Singapore acts as the responsible global player by helping to pick up the tab. The more we say we are first world, the more the international community would want us to help chip in. There is nothing wrong in helping out since what goes around comes around in the international arena of realpolitik karma and reciprocity, but sometimes we don’t know how and where the taxpayers’ money is spent. Just like how we are concerned about GIC investing our money and the returns Singapore is getting.
WASHINGTON — Singapore has agreed to increase fourfold its contribution to an International Monetary Fund credit line aimed at combating financial crises, the fund said Tuesday.
The island republic would increase its current contribution to the fund’s New Arrangements to Borrow (NAB) of 500 million dollars, by 1.5 billion dollars to 2.0 billion dollars.
The NAB is a set of credit arrangements between the IMF and a group of members and institutions to provide supplementary resources to the Washington-based fund to help cope with financial crises.
“I welcome the commitment by Singapore to support the lending capacity of the IMF through an increased contribution to the New Arrangements to Borrow,” said IMF managing director Dominique Strauss-Kahn.
“Singapore’s contribution will strengthen the global financial system by increasing confidence that the IMF’s resources will be sufficient to meet the financing needs of its member countries,” he said.
The leaders of the Group of 20 emerging and developed nations agreed at a summit in April in London to hike the IMF’s NAB facility by up to 500 billion dollars.
The European Union announced last week it would raise the bloc’s contribution to 125 billion euros (178 billion dollars).