Press Release No. 10/50

Press Release: IMF Signs SDR 405 Million Borrowing Agreement with the Bank of Spain to Support Lending to Low-Income Countries

February 19, 2010

The International Monetary Fund (IMF), as Trustee of the Poverty Reduction and Growth Trust (PRGT), has signed a borrowing agreement with the Bank of Spain, through which Spain will provide the Trust with SDR 405 million (about US$617 million) in new loan resources for low-income countries.

This agreement, signed on December 17, 2009, expands the IMF’s capacity to help low-income countries hit hard by the current global crisis, and increases the loan resources available for the recently reformed concessional lending facilities. Following the Executive Board’s approval of these reforms in July 2009, the Managing Director has launched a fund-raising campaign seeking SDR 9 billion in new bilateral loan resources and SDR 0.2-0.4 billion in bilateral subsidy contributions (see Press Release No. 09/268).

The Poverty Reduction and Growth Trust replaced the former Poverty Reduction and Growth Facility and Exogenous Shocks Facility Trust following the decision of the Executive Board, effective January 7, 2010. The PRGT expands the previous PRGF-ESF Trust, and these loan resources are now in the PRGT.