The fundraising targets for the Poverty Reduction and Growth Trust (PRGT) agreed to in July 2021, have been met, International Monetary Fund Managing Director Kristalina Georgieva announced on Saturday at a press conference in Marrakech as part of the IMF and World Bank Annual Meetings. More than 40 contributors have delivered for these urgently needed subsidy resources «- one-third of them from emerging market economies, including from Africa,» Georgieva said. «Heading into the Annual Meetings, we had just successfully met our target to raise US$17 billion (SDR 12.6 billion) for PRGT loan resources. And here in Marrakech, I am delighted that we have also met our fundraising goal of US$3 billion (SDR 2.3 billion) for PRGT subsidy resources, which ensures that PRGT financing can continue to be provided at zero-interest rate,» she added. The IMF Managing Director pointed out that "reaching these targets is critical to allow the IMF to continue to support low-income countries with zero-interest rate financing to meet their evolving needs.» She added that " the IMF has been a strong partner for low-income countries,» which «have been hit hard by multiple global shocks in recent years.» «Not only are they bearing the brunt of economic scarring from the pandemic, these countries are also grappling with food price shocks, high debt, and the increasing occurrence of climate disasters.» On the issue of zero-interest lending through the PRGT, the IMF chief pointed out that "since the start of the pandemic, these have increased fivefold - to about US$30 billion - benefiting 56 countries.» Currently, 30 countries (almost 45 percent of all PRGT-eligible countries) have an ongoing PRGT-supported programme, the largest share since the inception of the PRGT in 2009, she said. According to Gerogieva, demand for PRGT support is projected to reach nearly US$40 billion during 2020-24, about five times the historical average. She stressed the IMF's commitment "to ensuring that the PRGT continues to provide crucial support to low-income countries". «We will now embark on a comprehensive Review of the Fund's Concessional Facilities and Financing to ensure that the long-term financing capacity of the PRGT is placed on a sustainable footing,» she added.

Source: Agence Tunis Afrique Presse