The International Monetary Fund (IMF) has successfully reached its fundraising goal to augment concessional trust fund resources for the world’s most impoverished nations by $3 billion, as stated by IMF Managing Director Kristalina Georgieva on Saturday.
Georgieva explained that the contributions, which were 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 countries.”
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She noted that lending through the Poverty Reduction and Growth Fund (PRGT) has surged fivefold to $30 billion since the beginning of the Covid-19 pandemic, with approximately 30 countries still participating in loan programs.
The demand for the trust’s resources is projected to reach $40 billion by 2024, which is roughly five times the historical average.
The IMF had encouraged member countries to fill a $1.2 billion gap in the $3 billion subsidy account approved by the membership in 2021. Georgieva mentioned that 40 countries had stepped forward to make contributions, with one-third of them being emerging market economies.
