India to get $4.78 bn from IMF's SDR allocation

NEW DELHI, INDIA: India will get around $4.78 billion from the International Monetary Fund's (IMF) Special Drawing Rights (SDR), which the IMF Board of Governors have approved recently.

This is India's share of the general allocation of the $250 billion SDR allotted by the IMF to provide liquidity to global economic system. These funds would be made available on August 28.

The equivalent of nearly $100 billion of the general allocation will go to emerging markets and developing countries, of which low-income countries will receive over $18 billion, an IMF press release said on Friday.

At its meeting on August 7, the MF Executive Board backed the general allocation on July 17, 2009, following the commitment made by G20 leaders at their April summit to boost global liquidity and welcomed by the International Monetary and Financial Committee (IMFC).

The equivalent of nearly US$100 billion of the general allocation will go to emerging markets and developing countries, of which low-income countries will receive over US$18 billion.

The allocation will provide each participating country with SDRs in amounts equivalent to approximately 74 per cent of its quota, and could increase Fund members' total allocation to an amount equivalent to about $283 billion, from about $33 billion, the release added.

Also, the Fourth Amendment to the IMF Articles of Agreement providing for a special one-time allocation of SDRs has now entered into force. The special allocation will be made to IMF members on September 9.