The Executive Board of the International Monetary Fund (IMF) has agreed to temporarily raise the Poverty Reduction and Growth Trust (PRGT) normal annual access limit to 200% of quota and the normal cumulative access limit to 600% of quota until end-2024.
These changes are intended to better support the Fund’s low-income members such as Ghana in a particularly challenging and uncertain global economic environment.
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 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. Since then, the GRA access limits have been temporarily raised to 200 / 600 in March 2023.
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.
Executive Board Assessment
The Executive Directors of the Fund welcomed reaching the milestone of SDR 2.3 billion first‑stage target for PRGT subsidy resources agreed in 2021.
The Board approved the proposal to raise, on a temporary basis until end‑2024, the annual and cumulative access limits under the Poverty Reduction and Growth Trust (PRGT), as well as the per arrangement cap on the PRGT resources under the blending policy until end‑2024.
Directors noted that low‑income countries (LICs) are facing persistent headwinds and an uncertain global economic environment, while having diminished policy buffers and facing tight financing conditions.
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