Spain will redirect an additional $1.9 billion in Special Drawing Rights (SDRs) to the International Monetary Fund (IMF) to support developing countries, Economy Minister Carlos Cuerpo told Reuters on Tuesday.
Speaking on the sidelines of a United Nations development financing conference in Seville, Cuerpo emphasized Spain’s commitment to global stability.
“Spain will always be part of the solution, for example, with the commitment to rechannel most of our SDRs … that would benefit developing countries,” Cuerpo said.
Spain has pledged to shift up to 50% of its total SDR holdings — more than €5.5 billion — demonstrating the nation’s support for sustainable economic development in less advantaged regions.
SDRs are reserve assets created by the IMF to enhance global liquidity. Allocated to member countries in proportion to their IMF quotas, these assets can be exchanged among governments for usable currencies during times of financial need.
The redirected funds will be funnelled into the IMF’s Poverty Reduction and Growth Trust, which provides concessional (low-interest) loans to the world’s poorest countries.
Spain’s decision is part of a broader international initiative aimed at addressing global inequalities and financing shortfalls in developing economies. However, the United States has notably declined to support the summit’s action plan, which was finalized over the past year.
The pre-summit “outcomes” agreement proposed ambitious goals, including tripling the lending capacity of multilateral banks, advancing debt relief efforts, raising tax-to-GDP ratios to at least 15%, and reallocating SDRs to countries in the greatest need.