At its meeting on November 17, 2021, the Federal Council adopted the dispatch on renewing the Monetary Assistance Decree. This is to ensure that Switzerland can continue to take international monetary assistance measures when necessary. In addition, the Federal Council approved contributions to the International Monetary Fund (IMF) for its Poverty Reduction and Growth Trust (PRGT) interest subsidies and debt relief for Sudan.
The Monetary Assistance Act of 2004 and the Monetary Assistance Decree enshrined therein provide Switzerland with appropriate instruments for engaging in international monetary cooperation. The existing Monetary Assistance Decree, which permits a total of up to CHF 10 billion in international monetary assistance by the Confederation, expires in April 2023. Continuing it until April 2028 with the same amount should ensure that Switzerland will maintain its ability to swiftly participate in measures to stabilise the global financial system when necessary. Now that the dispatch has been submitted to Parliament, the parliamentary process can begin.
In addition, the Federal Council approved a further contribution by Switzerland of CHF 50 million to the IMF’s PRGT interest subsidies and a federal contribution of CHF 7.5 million to the IMF’s debt relief for Sudan.
Global financial stability is especially important to Switzerland as an internationally highly interconnected and dynamic economy with its own currency and a major financial centre. For this reason, it has engaged in international monetary cooperation for many years, in particular through its membership in the IMF.