IMF Approves $8 Billion Support Package for Low-Income Countries

The International Monetary Fund (IMF) has approved a comprehensive reform and financing package for its Poverty Reduction and Growth Trust (PRGT), aimed at enhancing support for low-income countries. This package will generate approximately $8 billion in additional subsidy resources over the next five years, significantly increasing the PRGT's annual lending capacity to about $3.6 billion, more than double the pre-pandemic level. IMF Managing Director Kristalina Georgieva emphasized the urgency of this initiative, as low-income countries face unprecedented shocks and substantial financing needs. The reforms will tailor IMF support to the diverse economic conditions of these countries, with a new interest rate mechanism ensuring interest-free lending for the poorest. The package is expected to attract additional public and private funding to support sound policies and institutional development in these nations.