Press Release No. 16/534

IMF and the Danmarks Nationalbank Amend Borrowing Agreement to Increase Lending Capacity to Low-Income Countries by an Additional SDR 300 Million

December 2, 2016

The International Monetary Fund (IMF), as Trustee of the Poverty Reduction and Growth Trust (PRGT), has entered into an amendment of its 2010 borrowing agreement with the Danmarks Nationalbank (see Press Release No.10/51), through which Denmark will provide an additional amount of up to SDR 300 million (about US$407 million) in new loan resources. Accordingly, the total loan amount under the borrowing agreement with Denmark was amended to provide up to SDR 500 million for the PRGT benefitting the IMF’s low‑income member countries.

This amendment, made effective on November 17, 2016, constitutes Denmark’s third loan contribution to PRGT and is among the first three PRGT loan contributions to take effect under the current fund-raising campaign (see Press Releases No. 16/535 and 16/536). Following the Executive Board’s endorsement, the Managing Director launched this campaign in November 2015 with a target of SDR 11 billion in new bilateral loan resources. (see Update on the Financing of the Fund's Concessional Assistance and Debt Relief to Low-Income Member Countries ).

Denmark’s continued support to the PRGT in loan resources for the IMF’s low-income member countries is a critical element towards sustaining the Fund’s concessional lending operations over the medium-term.

Useful links :

Factsheet: Financing the IMF's Concessional Lending to Low-Income Countries

Factsheet: Where the Fund gets its Money