The IMF chief called on member countries to step up pledges
for the fund's Poverty Reduction and Growth Trust (PRGT), citing
estimates that showed demand for PRGT funding reaching nearly
$40 billion in the period from 2020 to 2024, which is more than
four times the historical average.
Writing in a blog, Georgieva said pledges for the PRGT, seen
as critical to help countries weather the COVID-19 pandemic, had
reached only 75% of the $16.0 billion target, and less than half
the $3.1 billion needed in subsidy resources.
"A failure to secure these resources would jeopardize the
IMF’s ability to provide much needed support to low-income
countries as they seek to stabilize their economies in an
increasingly shock-prone world," Georgieva wrote.
"Additional pledges are ... urgently needed to meet the
agreed fundraising target by the time of this October’s annual
meetings in Morocco."
She said the issue would be addressed on April 12 during a
special session of IMF donors and recipients of concessional
financing, citing an IMF estimate that low-income countries'
financing needs would reach about $440 billion through 2026.
The PRGT provides interest-free loans that support economic
programs in developing countries, which in turn helps stimulate
additional financing from donors, Georgieva wrote in the blog.
She said the IMF had supported more than 50 low-income
countries with some $24 billion in interest-free loans via the
PRGT since the beginning of the COVID pandemic, helping them
grapple with economic shocks, inflation and rising debt
vulnerabilities.
(Reporting by Andrea Shalal; Editing by Robert Birsel)
WASHINGTON, March 31 (Reuters) - The head of the
International Monetary Fund Kristalina Georgieva on Friday urged
member countries to plug the growing financing gap facing a fund
that provides interest-free loans to the poorest countries,
citing growing demand for financing.
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