Speaker, the commitment that the International Monetary Fund, IMF, secured from some of its members at the G20 meeting in Mexico, in June 2012, to increase its resources by $456 billion is intended to create contingency funding in the event of further deterioration in the global economic situation. The contingency funding could be used by any of the members of the IMF to stave off the risk of another financial crisis.
South Africa's commitment to contribute $2 billion to the fund was informed by the need to promote global financial stability and prevent a downturn in the global economy which will have adverse consequences for South Africa's growth and employment prospects, given our trade and financial exposure to the Euro area and global markets. Thus, it is in our national interest to strengthen the IMF resources. The funds used for this purpose would be considered part of South Africa's foreign reserves. The funds will be invested and earn interest and would only be drawn down in emergency circumstances. If the funds are drawn down, they will ultimately be repaid, and they will continue to earn interest over this period. South Africa's commitment is intended to promote global economic policy co-ordination and co-operation.
South Africa's participation in this resourcing exercise anticipates that all quota and voting reforms agreed upon in 2010 will be implemented in a timely manner. Thus, South Africa's resource commitment is intended to promote reforms in the governance of the International Monetary Fund, in particular, and of international financial institutions in general.
South Africa's contribution was part of $75 billion committed by the Brazil, Russia, India, China, and South Africa, Brics, group and is intended to enhance peer leadership amongst this group of developing nations. The relative contributions per country are as follows: Brazil contributed $10 billion, Russia $10 billion, India $10 billion, China $43 billion, and South Africa $2 billion.
The resource commitment by South Africa and other Bric members, in anticipation of the implementation of the 2010 International Monetary Fund reform agreement, will strengthen their leadership in advocating for the reform of the governance of the IMF. I thank you for your attention.