The Executive Board of the International Monetary Fund (IMF) has completed the Review of Poverty Reduction and Growth Trust (PRGT) Facilities and Financing, the IMF\u2019s vehicle for providing concessional financing to low-income member countries. <\/p>\n In a statement on October 15, 2024, Kristalina Georgieva, Managing Director of the Fund announced: “Our membership today has adopted a comprehensive reform and financing package for the Poverty Reduction and Growth Trust (PRGT) to bolster the IMF\u2019s support to low-income countries.\u201d<\/p>\n \u201cThe package includes a framework to deploy IMF net income and\/or reserves to generate about US$8 billion in additional subsidy resources for the PRGT over the next five years,\u201d she noted.<\/p>\n She said: \u201cCombined with other reform measures and last year\u2019s successful bilateral fundraising, this would increase the PRGT\u2019s long-term annual lending envelope to about US$3.6 billion, more than twice the pre-pandemic level, and help catalyse significant additional flows from public and private sources.\u201d<\/p>\n This agreement, the IMF MD noted, \u201ccomes at a critical time as low-income countries have suffered a series of unprecedented shocks and face substantial financing needs.\u201d<\/p>\n \u201cWith exceptionally high demand for PRGT financing, the approved package will generate the concessional resources necessary to ensure that the Fund can continue supporting low-income countries to implement sound policies and build strong institutions,\u201d explained Ms Goeigieva.<\/p>\n These reforms, she highlighted, \u201cwill help tailor IMF support to country-specific needs, recognising the increasing economic heterogeneity of low-income countries.\u201d<\/p>\n To ensure that scarce concessional resources are targeted to those most in need, she mentioned that, \u201cA new interest rate mechanism will maintain interest-free lending for the poorest countries while ensuring that lending terms for others have a sufficient degree of concessionally.\u201d<\/p>\n Access policies, she added, \u201cWill allow for flexibility in calibrating Fund support, and safeguards will be strengthened and streamlined.\u201d<\/p>\n \u201cOur global membership has demonstrated once again its shared commitment to support our low-income members in challenging economic times,\u201d she said.<\/p>\n Watch the latest edition of BizHeadlines below:<\/b><\/p>\n![\"IMF](\"https:\/\/cdn.ghanaweb.com\/imagelib\/pics\/289\/28996951.295.jpg\" "\\"IMF")
IMF Managing Director, Kristalina Georgieva<\/span><\/span><\/p>\n<\/div>\n