The International Monetary Fund (IMF) has temporarily raised the Poverty Reduction and Growth Trust (PRGT) normal annual access limit to 200% and the normal cumulative access limit to 600% percent of quota until end-2024.
These changes, which were agreed by the IMF Executive Board on December 7, are intended to better support the Fund’s low-income members in a particularly challenging and uncertain global economic environment, it said in a statement on Friday.
The PRGT is the Fund’s concessional lending arm (currently at zero percent interest rates).
In March 2023, the IMF Executive Board decided that an interim review of the PRGT access limits should be carried out once substantial progress with the PRGT first stage fundraising target for subsidy resources of SDR 2.3 billion was met.
This target was met in October 2023 (see PR23/352) thanks to the generosity of over 40 countries, paving the way for the interim review.
IMF’s concessional lending under the PRGT is subject to normal annual and cumulative access limits. The PRGT access limits were last reviewed in July 2021, setting the normal annual and cumulative access limits at 145 and 435% of quota respectively, aligned with then prevailing General Resources Account (GRA) access limits.
Thereafter, the GRA access limits have been temporarily raised to 200 / 600 in March 2023 (see PR23/60).
The temporary increase in PRGT access limits will allow more flexibility in Fund’s support to countries with large balance of payments needs and facilitate their implementation of strong economic programs that help maintain or restore sustainable economic positions and inclusive growth.
The forthcoming Review of the Fund’s Concessional Facilities and Financing, expected to be completed in the Fall of 2024, will cover both the review of facilities, including access limits, and PRGT financing, including to ensure the long-term financial sustainability of the trust.
The temporary increase in PRGT access limits will allow more flexibility in Fund’s support to countries with large balance of payments needs and facilitate their implementation of strong economic programs that help maintain or restore sustainable economic positions and inclusive growth.
