The Swiss Federal Council plans to contribute 850 million Swiss francs (USD841 million) to boost the resources available to a trust fund for developing countries managed by the International Monetary Fund.
If approved by the Swiss parliament, the loan would be channeled through the Swiss National Bank.
“The Federal Council is now submitting a dispatch to parliament for that purpose. This would be the third such contribution from Switzerland, following the granting of loans with a federal guarantee in 1995 and 2001. To date, the IMF has always met its obligations arising from such loans,” a news release from the Swiss government says.
The Federal Council has also agreed to contribute to the capital increases of multilateral banks.
“The negotiations with all the development banks on an increase in capital have been concluded. The Swiss Federal Council has decided to contribute towards the increases in capital of the development banks. It is proposing to commit 3.5 billion Swiss francs, 167 million of which is payable over eight years and will be apportioned to the official development aid,” the council said in a press release.
Switzerland’s contribution to the multilateral banks’ capital increase would also have to be approved by parliament.