IMF launches $45bn trust for Nigeria, others May
The International Monetary Fund has said its Resilience and Sustainability Trust for low-income and vulnerable middle-income countries will come into effect on May 1, 2022.
According to the IMF, the trust aims to help low-income countries address longer-term structural challenges that pose macro-economic risks, including climate change and pandemics.
The Managing Director, IMF, Ms. Kristalina Georgiva, disclosed this in a statement announcing the Trust in Washington DC.
She said, “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 and we can only succeed by working together.
“The RST will amplify the impact of the $650bn SDR allocation implemented last year by channeling resources from economically stronger members to countries where the needs are greatest. The aspiration is to build a Trust of at least $45bn in resources.
“The RST will serve as a third pillar of the IMF’s lending toolkit, in addition to the General Resources Account and the Poverty Reduction and Growth Trust. The RST will provide policy support and affordable longer maturity financing with a 20 year maturity and a 10 and half year grace period to help build resilience against long term risks to balance of payments stability.
“About three-quarter of the IMF’s country membership will be eligible for RST financing, including low-income members as well as most middle-income countries and all small developing states. We have worked extensively with out members and other stakeholders to design the RST, with the goal of balancing the needs of potential contributors and borrowers”.
