Subsidization of IMF Emergency Assistance for Natural Disasters

The International Monetary Fund (IMF) announced today that it has so far received firm pledges of grant contributions totaling SDR 24 million (about US$36 million) for the subsidization of emergency assistance for natural disasters (ENDA) since this initiative was launched in January 2005 (see Public Information Notice No. 05/8). This represents roughly half of the targeted amount for the next five years. In addition, a number of other countries have indicated that they are considering making contributions. These subsidy contributions are available to benefit low-income countries struck by natural disasters who seek emergency financial assistance from the Fund, including countries affected by the recent Indian Ocean tsunami.

Emergency Assistance for Natural Disasters
Contributions by Member Countries
(In millions, as of mid-April 2005)

Country

Pledged

SDR

Contribution

Equivalent

Austria^1/

US$ 1.0

0.7

Canada

CAN$ 5.0

2.7

France

Euro 1.5

1.3

India

SDR 1.5

1.5

Japan

US$ 2.5

1.7

Luxembourg

Euro 1.25

1.1

The Netherlands^2/

US$ 2.0

1.3

Norway

NKr 10.0

1.0

Russia^3/

US$ 1.5

1.0

Saudi Arabia

US$ 4.0

2.7

Sweden

US$ 10.0

6.6

Switzerland

US$ 2.0

1.3

United Kingdom

£ 1.0

1.2

Total

24.0

^1/ Contribution is subject to parliamentary approval.

^2/ In addition, the Netherlands has allowed for its earlier contribution of SDR 1.5 million for the subsidization of emergency post-conflict assistance to be used flexibly for either kind of emergency assistance.

^3/ Contribution is pending ratification by the government.

The Executive Board of the IMF approved a proposal to subsidize the Fund's ENDA to low-income members eligible for the Poverty Reduction Growth Facility (PRGF) on January 21, 2005 (see PIN No. 05/8). It is estimated that resources in the range of SDR 45-65 million will need to be mobilized to finance the intended subsidization of ENDA over the next five years. The IMF encourages other member countries to provide contributions to make this initiative fully effective.