Home » News » New Trust To Help ‘Vulnerable’ Countries Unveiled By IMF
New Trust To Help ‘Vulnerable’ Countries Unveiled By IMF
FILE PHOTO: IMG MD. Kristalina Georgieva. REUTERS/Jason Lee/File Photo

New Trust To Help ‘Vulnerable’ Countries Unveiled By IMF

The International Monetary Fund -IMF has set aside plans to raise at least $45bn for a new trust to help them cope with protracted challenges. Some of the challenges mentioned include pandemics, climate change, among others.

The crisis lender’s Resilience and Sustainability Trust (RST), based in Washington came into effect on May 1. It is in addition to a $650bn boost to reserve assets called Special Drawing Rights (SDR) allocated in 2022.

“As the world is confronting consecutive global shocks, we must not lose sight of the critical actions needed today to ensure longer-term resilience and sustainability,” IMF Managing Director Kristalina Georgieva said in a statement announcing the new trust.

Furthermore, she said the trust’s goal is to redistribute funds from richer countries to more vulnerable ones.

Luckily, about three quarters of the 190 IMF members will be able to borrow from the new tool.

As it’s first proposal came in 2021, the RST will offer extended repayment periods. This is within a 20-year maturity and 10-year grace period.

The IMF said to qualify for the money member countries need a package of high-quality policy measures, have sustainable debt and adequate capacity to pay.

It further added that the trust will require close collaboration with the world bank and other international financial institutions.

“The RST will amplify the impact of the US$650 billion SR allocation implemented last year by chaneling resources from economically stronger members to countries where the needs are greatest” said Georgieva.

The increase was the biggest ever for SDRs. These are international reserve assets that aid governments in protecting their financial reserves against global currency fluctuations.

They also help the IMF calculate loans and interest rates.

Check Also;

This is not a Paywall, but Newslex Point's journalism consumes a lot of time, hard-work and money. That's why we're kindly requesting you to support us in anyway they can, for as little as $1 or more, you can support us .

Please use the button below to contribute to Newslex Point, Inc. using a credit card or via PayPal.

Donate Button with Credit Cards

Comments

comments

Loading...

About Kyeyune Andrew Jonathan

Loading...
x

Check Also

Majambere Claims He's The Next After Isma Olaxess Death

Majambere Claims He’s The Next After Isma Olaxess Death

Following the unfortunate death of popular social media blogger Isma Olaxess, Mpologoma Majambere, an ardent ...