Selected Decisions and Selected Documents of the IMF, Thirty- Sixth Issue -- A New Architecture of Facilities for Low-Income Countries and Reform of the Fund’s Concessional Financing Framework

Prepared by the Legal Department of the IMF
As updated as of December 31, 2011

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ARTICLE V, SECTION 2(b)
Technical and Financial Services
Financial Services

A NEW ARCHITECTURE OF FACILITIES FOR LOW-INCOME COUNTRIES AND REFORM OF THE FUND’S CONCESSIONAL FINANCING FRAMEWORK

A. Transformation of the PRGF-ESF Trust

1. The name of the Trust established pursuant to Decision No. 8759-(87/176) ESAF, adopted December 18, 1987, shall be changed to the “Poverty Reduction and Growth Trust” (“PRGT”). Accordingly, Decision No. 8759-(87/176) ESAF and the title of the Annex to that Decision shall be amended by replacing “Poverty Reduction and Growth Facility and Exogenous Shocks Facility Trust” with “Poverty Reduction and Growth Trust.”

2. The Instrument to Establish the PRGT (“PRGT Instrument”) annexed to Decision No. 8759-(87/176) ESAF, along with its Appendices, shall be amended to read as set forth in the Attachment to this decision.1

3. All arrangements under the Poverty Reduction and Growth Facility that are in force on the effective date of this decision shall be renamed arrangements under the Extended Credit Facility (“ECF”) provided for in the Attachment to this decision, and all PRGF loans outstanding on the effective date of this decision shall be renamed ECF loans.

4. The Fund may continue to approve arrangements under the Exogenous Shocks Facility (“ESF”) established pursuant to Decision No. 13590-(05/99) ESF for up to a period of three months after the effective date of this decision. Such arrangements, along with those in force on the effective date of this decision, shall generally be subject to the same modalities as were applicable to ESF arrangements immediately prior to the effective date of this decision, as set forth in the PRGT Instrument and Appendix III thereof. All disbursements outstanding under the ESF, whether made before or after the effective date of this decision, shall be subject to the terms and conditions set forth in the PRGT Instrument, including as those may be amended from time to time while such disbursements remain outstanding.

5. Except as otherwise specifically provided, references in other Fund decisions, instruments, agreements or documents to the Poverty Reduction and Growth Facility and Exogenous Shocks Facility Trust, PRGF, PRGF Trust, PRGF/ESF eligibility or PRGF/ESF Instrument shall be understood to be, respectively, references to the Poverty Reduction and Growth Trust, ECF, PRGT, PRGT eligibility and PRGT Instrument.

B. Amendment of the PRGF-HIPC Trust Instrument

6(c) Except as otherwise specifically provided, references in the PRG-HIPC Trust Instrument to “interim PRGF” shall be understood to be references to “interim ECF,” and references to “self-sustained PRGF” shall be understood to be references to “self-sustained ECF.”

C. Amendment of the Policy Support Instrument

D. Amendment of the Administered Account for EPCA/ENDA Subsidies to PRGT-Eligible Members

E. Consequential Changes to Other Fund Decisions

12. The Fund as Trustee under the PRGT Instrument decides that Decisions No. 8845-(88/61) ESAF, and No. 8846-(88/61) ESAF, both adopted April 20, 1988 are repealed.

F. Transfers of SDA-Derived Resources for Subsidy Purposes

19. For financial years 2010 through 2012, no reimbursement shall be made to the General Resources Account from the Reserve Account of the PRGT for the cost of administering the PRGT. The estimated cost of administering the PRGT shall be transferred after the end of each such financial year from the PRGT Reserve Account (through the Special Disbursement Account) to the General Subsidy Account of the PRGT provided for in the Attachment to this decision.

G. Effectiveness of Decision

20. This decision shall become effective when all lenders to the Loan Account of the PRGF-ESF Trust, and all third party contributors of subsidies to the PRGF-ESF Trust, have consented to the amendments set forth in Section A above. (SM/09/189, Sup. 2, 7/24/09)

Decision No. 14354-(09/79),
July 23, 2009,
effective January 7, 2010

1 Ed. Note: See the Annex of the following decision for the text of the instrument of the PRG Trust.

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