Question to the HM Treasury:

To ask Her Majesty's Government what steps they are taking to support proposals made at the IMF and World Bank spring meetings to issue additional Special Drawing Rights to (1) African, and (2) other IMF members, in need of liquidity.

The Government has been vocal in supporting the IMF in its response to liquidity challenges posed by Covid-19.

In response to the crisis, the IMF has doubled its concessional emergency financing support available through the Poverty Reduction and Growth Trust (PRGT) and provided debt relief through the Catastrophe Containment and Relief Trust (CCRT). Several African countries have benefited from support from the PRGT and CCRT.

The UK has strongly supported these efforts. In the face of increased demand for PRGT and CCRT resources, the UK has recently agreed a new £2.2bn loan to the PRGT and provided a contribution of up to £150m to the CCRT.

The Government welcomes the IMF’s recent agreement on a new instrument, the Short-term Liquidity Line, to provide liquidity support for IMF members with strong macro-economic fundamentals. The Government has also encouraged the IMF to keep the possibility of a Special Drawing Rights allocation under review, and will continue to do so.

HM Treasury is the department responsible for the UK’s relationship with the IMF. The relevant Cabinet committees have agreed on the importance of supporting vulnerable countries in responding to the crisis, including through the IMF.