The International Monetary Fund Reaches Fundraising Goal to Support Poorest Countries
IMF Successfully Meets Fundraising Target
The International Monetary Fund (IMF) has announced that it has achieved its fundraising target of adding $3 billion to the concessional trust fund for the world’s poorest countries. This news comes from IMF Managing Director Kristalina Georgieva, who revealed the achievement during the IMF and World Bank annual meetings held in Morocco.
Supporting Low-Income Countries
Georgieva expressed her satisfaction with the completed contributions, stating that they will enable the IMF to continue providing zero-interest rate financing to low-income countries. This support is crucial in helping these nations meet their evolving needs.
Increased Lending and Growing Demand
Georgieva further highlighted the significant increase in lending through the Poverty Reduction and Growth Trust (PRGT), which has reached $30 billion since the beginning of the COVID-19 pandemic. Despite this substantial lending, around 30 countries still have active loan programs. The demand for the trust’s resources is expected to reach $40 billion by 2024, which is approximately five times the historical average.
Global Response to Funding Gap
The IMF had previously called on member countries to fill a $1.2 billion gap in the $3 billion subsidy account endorsed by the membership in 2021. Georgieva shared that 40 countries, including emerging-market economies, stepped up to contribute, showcasing a global response to support the world’s most vulnerable nations.
The IMF’s achievement in reaching its fundraising goal is a significant milestone in providing vital financial assistance to the poorest countries. Through continued support and collaboration, these nations can navigate the challenges they face and build a more resilient future.
