Demand Projections for the Fund's Concessional Resources

March 16, 2011

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Demand Projections for the Fund's Concessional Resources, (USA: International Monetary Fund, 0) accessed November 21, 2024

Summary

Projections of demand for concessional loans under the Poverty Reduction and Growth Trust (PRGT) are subject to a high degree of uncertainty. The Fund’s financial support to low-income countries (LICs) is both cyclical and lumpy. Moreover, there are important structural changes underway that are likely to affect the frequency, nature, and size of Fund concessional lending. As a result, simple extrapolations from historical lending volumes are misleading. This paper reviews factors underlying historical lending trends and develops a methodology that can narrow down the range of possible longer-term demand scenarios.

Subject: Concessional aid, Demand, Extended Credit Facility, Forward commitment capacity, Fund facilities, General Resources Account, Low-income developing countries, Policy Support Instrument, Poverty Reduction and Growth Trust, Resource mobilization, Standby Credit Facility

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