The International Monetary Fund (IMF) has confirmed the addition of $3 billion to its concessional trust fund resources designated for the most impoverished countries globally, as declared by IMF Managing Director Kristalina Georgieva on Saturday.
Georgieva emphasized in her statement that the contributions, finalized during the IMF and World Bank annual meetings held in Morocco, will enable the IMF to continue providing zero-interest rate financing to meet the evolving needs of low-income nations. With the ongoing impact of the COVID-19 pandemic, the lending through the Poverty Reduction and Growth Trust (PRGT) has surged to $30 billion, marking a significant five-fold increase. Despite this progress, approximately 30 countries are still engaged in loan programs, underscoring the sustained demand for the trust’s resources, projected to reach $40 billion by 2024, which is five times the historical average.
In order to bridge the $1.2 billion gap in the $3 billion subsidy account, a measure endorsed by the membership in 2021, the IMF had called upon member countries to contribute. Georgieva noted that 40 nations responded to the call, with one-third comprising emerging-market economies, signifying a global commitment to support the mission of alleviating financial constraints for the most vulnerable countries.
