July 12, 2021
It is the biggest grant under the IMF Special Drawing Right, (SDR) since the great depression. The amount is a whopping 650 Billion United State dollars approved by the IMF Executive Board to benefit developing countries and Sierra Leone’s impressive standing in engagement with the IMF makes the country a potential candidate for the money that will be disbursed in August this year.
According to a Press Release issued by the IMF quoting the President Kristalina Georgieva, ““The IMF Executive Board yesterday concurred in my proposal for a new general SDR allocation equivalent to US$650 billion – the largest allocation in the IMF’s history – to address the long-term global needs for reserves during the worst crisis since the Great Depression.”
She added: ““This is a shot in the arm for the world. The SDR allocation will boost the liquidity and reserves of all our member countries, build confidence, and foster the resilience and stability of the global economy. In 2009, an SDR allocation contributed significantly to recovery from the global financial crisis and I am confident that this new allocation will have a similar benefit now.”
The release further states that this money will enhance the recovery effort of vulnerable countries and IMF intends to remain engaged with member countries “to identify viable options for voluntary channeling of SDRs from wealthier members to support our poorer and more vulnerable countries to help their pandemic recovery and achieve resilient and sustainable growth, which will also help boost global economic recovery.”