IMF approves $3.6b annual lending plan for low-income countries

The International Monetary Fund (IMF) has approved reforms to its concessional lending facilities, endorsing an annual lending envelope of SDR 2.7 billion ($3.6 billion), more than twice the pre-Covid-19 average, to support Low-Income Countries (LICs).

These reforms, outlined in the “2024 Review of the Poverty Reduction and Growth Trust (PRGT) Facilities and Financing,” aim to address a funding shortfall as the IMF’s lending commitments surged to an average of SDR 5.5 billion since 2020.

The changes include a tiered interest rate mechanism to prioritise resources for the poorest LICs and measures to sustain the PRGT’s long-term lending capacity. The IMF also plans to generate an additional SDR 5.9 billion (US$ 8 billion) through internal resources and bilateral contributions.