Interim Review of Access Limits Under the Poverty Reduction and Growth Trust and Initial Considerations for Access Limits under the General Resource Account

December 15, 2023

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Format: Chicago

Interim Review of Access Limits Under the Poverty Reduction and Growth Trust and Initial Considerations for Access Limits under the General Resource Account, (USA: International Monetary Fund, 2023) accessed November 23, 2024

Summary

The interim review on PRGT access limits follows the call from the Executive Board in March 2023 and confirmed by the IMFC in October 2023. Low-income countries (LICs) face high economic uncertainty and pressures, while grappling with limited policy space and a funding squeeze. In March 2023, access limits under the General Resources Account (GRA) were temporarily increased for 12 months to give space for countries to face such economic pressures. The IMF Executive Board emphasized the importance of the alignment of the Poverty Reduction and Growth Trust (PRGT) access limits with those of the GRA that was achieved in 2021. The Board also agreed that, once substantial progress with PRGT fundraising toward the SDR 2.3 billion first-stage target for subsidy resources agreed in 2021 has been made—with total pledges of SDR 2 billion or more—access limits under the PRGT would be reviewed at an ad hoc interim review. This target has now been reached, paving the way for the review, also called for by the IMFC during the Annual Meetings in October 2023, in a context where the LICs’ economic challenges have further increased, including due to the risk of additional negative spillovers on the global economy stemming from the current geopolitical tensions and conflicts.

Subject: Balance of payments, Balance of payments need, Concessional external borrowing, Credit risk, Debt sustainability, External debt, Financial regulation and supervision, Monetary policy, Political economy, Poverty, Poverty reduction strategy

Keywords: Balance of payments need, Concessional external borrowing, Credit risk, Debt sustainability, General Resources Account (GRA), Global, LICs, Low-income countries, Poverty Reduction and Growth Trust, Poverty reduction strategy, PRGT, PRGT access norm, PRGT commitment, PRGT financing strategy, PRGT lending, PRGT resource

Publication Details

Pages:

42
Volume:

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DOI:

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Issue:

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Series:

Policy Paper No. 2023/057
Stock No:

PPEA2023057
ISBN:

9798400261923
ISSN:

2663-3493

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