The Board of Governors of the IMF has approved a general allocation of Special Drawing Rights (SDRs) equivalent to US $650 billion on August 2, 2021, to boost global liquidity. This is reported on the IMF website.
“This is a historic decision – the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis. The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy. It will particularly help our most vulnerable countries struggling to cope with the impact of the COVID-19 crisis,” IMF Managing Director Kristalina Georgieva said.
The distribution will especially help the most vulnerable Member States, which are struggling to cope with the consequences of the COVID-19 crisis, she said.
The general allocation of SDRs will become effective on August 23, 2021. The newly created SDRs will be credited to IMF member countries in proportion to their existing quotas in the Fund.
According to the Office of President, Ukraine is expected to receive a tranche of more than $ 2.7 billion on August 23.
"It will be a great gift for our country on the 30th anniversary of independence. These funds will help overcome the effects of the COVID-19 crisis and boost our economy. I am grateful to the IMF and personally to Kristalina Georgieva for this decision," the President of Ukraine said.
Volodymyr Zelensky also stressed that cooperation with the IMF is very important for our country, so Ukraine continues to implement reforms and structural beacons to receive a new tranche under the current stand-by program.
"We are working to complete the first revision of the current program of the International Monetary Fund and expect an IMF mission in September. I emphasized this during our phone conversation with Mrs. Kristalina Georgieva," the Head of State said.