The Federal Council of Switzerland has given its approval for Switzerland to provide a loan to the International Monetary Fund’s (IMF) Resilience and Sustainability Trust (RST), emphasizing its commitment to addressing climate change. With a guarantee credit of CHF 750 million, the Swiss government is taking an active role in supporting sustainable initiatives.

The loan, amounting to 500 million Special Drawing Rights (SDRs) or approximately CHF 620 million, will be deposited for a period of ten years. To account for fluctuations in SDR exchange rates, the federal guarantee includes a reserve of CHF 130 million.

The primary objective of the Resilience and Sustainability Trust is to facilitate IMF loans for macroeconomic reforms and structural measures aimed at combating climate change, as well as preventing and addressing pandemics. By strengthening resilience in the target countries, this initiative contributes to the overall stability of the financial and economic systems.

Currently, the Resilience and Sustainability Trust benefits 143 countries, including members of Switzerland’s voting constituency in the IMF and World Bank, along with several partner countries involved in international development cooperation. Switzerland, being an open and dynamic economy, recognizes the importance of maintaining a stable currency and financial relations, which also encompass emerging markets and developing economies.

Switzerland’s commitment to supporting the Resilience and Sustainability Trust reflects its dedication to tackling climate change and promoting sustainability. Through this loan, Switzerland aims to play a significant role in fostering global resilience and addressing the challenges posed by climate change, benefiting both present and future generations.

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