Freetown, SIERRA LEONE – During the Annual Meetings held in Marrakech, Morocco on October 14, 2023, Managing Director Kristalina Georgieva proudly announced the International Monetary Fund’s (IMF) remarkable achievement of its Stage 1 Fundraising Targets for the Poverty Reduction and Growth Trust (PRGT).
Heading into the Annual Meetings, the IMF had successfully met their goal of raising an impressive US$17 billion (SDR 12.6 billion) for PRGT loan resources. In addition to this milestone, they also celebrated reaching the Fund’s fundraising objective of US$3 billion (SDR 2.3 billion) for PRGT subsidy resources in Marrakech.
This significant achievement ensures the continuity of providing PRGT financing at a zero-interest rate, a vital resource for low-income countries. Kristalina Georgieva remarked on the global solidarity that made this achievement possible, noting that more than 40 contributors, including one-third from emerging market economies in Africa, had rallied to support these urgently needed subsidy resources. Even countries that had previously benefited from IMF support stepped up to contribute, highlighting the global commitment to helping those in need.
Georgieva emphasized the IMF’s dedication to sustaining strong support for low-income countries, especially as they face rising needs in the wake of global shocks and transformational challenges. Having successfully completed this crucial stage of fundraising, the IMF is now turning its attention to a comprehensive Review of the Fund’s Concessional Facilities and Financing (2024/25 PRGT Review) to ensure the long-term financing capacity of the PRGT remains sustainable.
The IMF Chief expressed confidence that the global community will continue to show commitment and solidarity in providing necessary resources for low-income countries.
The IMF’s impact has been particularly pronounced since the onset of the pandemic, with zero-interest lending through the PRGT increasing fivefold, reaching about US$30 billion and benefiting 56 countries. At present, 30 countries, representing almost 45 percent of all PRGT-eligible countries, have ongoing PRGT-supported programs, marking the largest share since the PRGT’s establishment in 2009.
These programs play a pivotal role in supporting sound policies to foster sustained and inclusive growth, mobilizing financing from partners, and facilitating debt treatment where necessary. Looking ahead, the demand for PRGT support is projected to reach nearly US$40 billion during 2020-24, approximately five times the historical average. The IMF remains committed to ensuring that low-income countries receive the support they need to overcome their challenges in a rapidly changing world. ZIJ/17/10/2023