article_detail

Spain will redirect an additional €1.62 billion in Special Drawing Rights (SDRs) to the International Monetary Fund, Economy Minister Carlos Cuerpo confirmed on Tuesday July 1 during a UN conference on development financing held in Seville. The move is part of Spain’s broader effort to support developing countries and strengthen global economic resilience.

 

Speaking to Reuters on the sidelines of the summit, Cuerpo reaffirmed Spain’s commitment to rechannel up to 50% of its total SDRs – over €5.5 billion – to the IMF, primarily through its Poverty Reduction and Growth Trust. The Trust provides concessional loans to low-income nations.

 

“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.

 

SDRs are international reserve assets created by the IMF to supplement countries’ official reserves. They are not a currency in themselves but can be exchanged among member states for freely usable currencies in times of financial stress. Their reallocation is increasingly seen as a way for wealthier countries to support those facing economic hardship.

 

Spain’s announcement adds momentum to multilateral efforts to increase financing for the world’s most vulnerable economies, at a time when progress has been hampered by rising debt levels, sluggish growth and widening global inequality.

 

The Seville summit aimed to revitalise international cooperation on development funding, although the United States declined to support the final action plan, highlighting divisions among major economies.

 

The summit’s draft outcomes included a proposal to triple multilateral lending capacity, implement debt relief, and increase tax-to-GDP ratios in poorer countries to at least 15%.

 

Spain’s commitment stands out in the current geopolitical climate. While the country has resisted pressure to significantly increase defence spending in line with new NATO targets, it remains one of the few nations pledging to meet the long-standing UN goal of allocating 0.7% of GDP to international aid by 2030.

 

The contrast underlines Spain’s policy emphasis on global development and humanitarian support over military expansion, setting it apart from other Western nations that are shifting budgets towards defence.

 

Image: UNICEF