At its meeting on May 17, 2023, the Federal Council approved Switzerland’s provision of a loan to support the Resilience and Sustainability Trust (RST) of the International Monetary Fund (IMF). It adopted the dispatch for a guarantee credit of CHF 750 million.
The loan from the Swiss National Bank (SNB), amounting to 500 million Special Drawing Rights (SDRs; around CHF 620 million), is to be provided in the form of a ten-year deposit. The federal guarantee amounting to CHF 750 million includes a reserve of CHF 130 million to cover SDR exchange rate fluctuations.
The RST enables IMF loans to be granted for macroeconomic reforms and structural measures to deal with climate change, as well as to prevent and combat pandemics. This not only allows resilience to be strengthened in the target countries, but also helps to support the financial and economic system as a whole.
At present, 143 countries have access to this new instrument, including the members of the Swiss voting constituency in the IMF and World Bank, as well as some of Switzerland’s other partner countries in international development cooperation. As an open and dynamic economy, Switzerland has a huge interest in stable and well-functioning currency and financial relations that also include emerging market and developing economies.