Lending

IMF financing helps member countries tackle balance of payments problems and stabilize their economies while fostering sustainable economic growth, and through the Resilience and Sustainability Trust, IMF financing helps strengthen RST-eligible member countries’ prospective balance of payments stability. Financing is normally provided in the context of a multi-year arrangement in support of a member’s program. It can also be extended to help members address urgent balance of payments needs arising from natural disasters and other causes. IMF financing may also be provided on a precautionary basis to address potential balance of payments difficulties that could arise, for instance, from future negative shocks.

IMF lending is provided primarily from one of two sources: (1) General Resources Account (GRA) financing at interest rates determined as an average of those prevailing among the world’s main currencies, plus a markup, and (2) Poverty Reduction and Growth Trust (PRGT) loans to low-income countries (LICs) on concessional terms, below GRA lending terms and well below market rates. With the operationalization of the Resilience and Sustainability Trust (RST) in 2022, the IMF now offers a third lending pillar, which encompasses a tiered interest rate structure differentiated across country groups, with LICs benefiting from even more favorable terms.

Cabo Verde

Lending Overview

The IMF has continued to respond to economic challenges stemming from a series of shocks since the onset of the global pandemic, including through lending under IMF-supported programs.¹

Demand for lending and support under the IMF’s facilities remained high in FY 2026. Between May 1, 2025, and April 30, 2026, new requests were approved for about SDR 29 billion, focused on the following areas:

• New GRA and PRGT lending arrangements, including precautionary arrangements: The Executive Board approved two new nonprecautionary IMF arrangements with two countries. These include one under the GRA’s Extended Fund Facility, for SDR 5.9 billion, and one under the PRGT’s Extended Credit Facility, for SDR 455.7 million. Three precautionary arrangements under the GRA were also approved. These include two under the Flexible Credit Line, in the amount of SDR 18.9 billion, and one under the Stand-By Arrangement, for SDR 128.8 million. In addition to these lending arrangements, two members received emergency financing disbursements of SDR 456.8 million under the GRA’s Rapid Financing Instrument.
• Building on existing lending arrangements: The IMF augmented five existing arrangements under the PRGT’s Extended Credit Facility to accommodate new financing needs in the context of ongoing policy dialogue, for SDR 309.6 million. It also approved the augmentation of Extended Fund Facility arrangements for two members, in the amount of SDR 1.1 billion.
• The Executive Board also approved requests for arrangements under the Resilience and Sustainability Facility for five countries: Burkina Faso, The Gambia, Jordan, Liberia, and Pakistan (totaling about SDR 1.8 billion).

Overview of FY 2026

Policy Initiatives

General Resources

In December 2025, the IMF Executive Board concluded the Review of the Short-Term Liquidity Line (SLL). The review concluded that the SLL would terminate in April 2027, at the end of the seven-year period following its establishment, in line with the original design of the instrument.

Thailand

Poverty Reduction and Growth Trust

In November 2025, the Executive Board approved a two-step process to bring the temporarily higher cumulative access limits under the PRGT’s Rapid Credit Facility (RCF) back to prepandemic levels by 2028. This decision provides a clear path for the normalization of RCF access limits while retaining adequate borrowing space for most PRGT-eligible members should they face unexpected exogenous shocks and qualify for RCF financial support.

The current higher cumulative access limits under the RCF exogenous shock and large natural disaster windows had been increased temporarily to 150 percent (from 100 percent) and 183.33 percent (from 133.33 percent) of quota, respectively, during the COVID-19 pandemic. The Executive Board agreed to maintain the cumulative access limits at these levels through the end of 2026. These limits will then be reduced in two equal steps: by 25 percent of quota on January 1, 2027, followed by another 25 percent of quota reduction on January 1, 2028, restoring the cumulative access limits to their prepandemic levels. Countries that accessed the Food Shock Window under the RCF will retain until the end of 2029 the additional 25 percent of quota that was added to their cumulative access limits under the RCF exogenous shock window.

El Salvador

Implementation of the PRGT reforms approved in 2024 is on track. PRGT subsidy needs will be addressed mostly through a new interest rate mechanism and a distribution framework for General Resources Account net income and/or general reserves.

• The tiered interest rate mechanism became effective on May 1, 2025, for PRGT commitments under new arrangements and new RCF loans¹. While the poorest low-income countries continue to benefit from a zero interest rate, better-off low-income countries will be charged a positive but still concessional rate, calibrated to remain well below the special drawing right (SDR) interest rate and market interest rates.
• Progress has been made with the implementation of the GRA distribution framework, which aims to facilitate the generation of additional subsidy resources for the PRGT—of SDR 5.9 billion (in 2025 present value terms)—to ensure a self-sustaining annual lending capacity of SDR 2.7 billion. The first income distribution of SDR 1.38 billion from the GRA to the Interim Placement Administered Account (IPAA) took place on June 1, 2025, and the second income distribution of SDR 1.38 billion was approved by the Board on April 28 and took place on June 1, 2026. Quarterly transfers of interest income on IPAA balances to the PRGT’s Subsidy Reserve Account started on August 1, 2025, totaling SDR 26.1 million through the end of FY 2026. As of April 30, 2026, 30 members have provided assurances worth 45.7 percent of the maximum cumulative distribution amount (SDR 6.9 billion) for the PRGT. This represents more than half of the required 90 percent threshold. Once the 90 percent threshold of assurances is reached, each member’s share of the IPAA principal will become available and transferable from the IPAA in accordance with the member’s instructions, which include the following three options to channel their IPAA shares (or an equivalent amount) to the PRGT:
  1. Option 1: Members may instruct the IMF to transfer their share of the total principal amounts in the IPAA directly to the PRGT’s Subsidy Reserve Account.
  2. Option 2: Members may request that their share of the total principal amounts in the IPAA be transferred into a forthcoming Distribution Interim Administered Account, pending resolution of domestic processes required to allow contribution to the PRGT.
  3. Option 3: Members may choose to have their share of the total principal amounts in the IPAA paid directly to their SDR account before they make an equivalent separate grant contribution to the PRGT.

Uzbekistan

Resource Adequacy of the PRGT, RST, and Debt Relief Trusts

In March 2026, the IMF Executive Board received an update on the resource adequacy of the PRGT, RST, and debt relief trusts.

• Regarding the PRGT, the update reported that PRGT subsidy resources remain adequate, provided the implementation of the 2024 PRGT reforms, especially the GRA distribution framework, remains on track. Lower-than-expected lending commitments in 2024 and 2025 are expected to be broadly offset by additional demand in the next two years, expected to average SDR 3 billion to 5 billion per year in 2026 and 2027; the medium- to long-term outlook remains broadly unchanged. The estimated PRGT lending capacity remains within the Board-endorsed corridor of SDR 2.5 billion to SDR 3.0 billion. PRGT reserves relative to credit outstanding, which provides security for PRGT lenders, have stabilized, following a decline as a result of higher lending after the pandemic. PRGT loan resources are expected to be sufficient to cover lending demand through the medium term.
• Regarding the RST, the update highlighted continued good progress on voluntary bilateral contributions and noted that RST loan resources are expected to be sufficient to meet the current demand pipeline at least through 2028. The update found that RST reserves remain adequate under the baseline, although net reserve coverage to credit outstanding temporarily falls below the 10 percent threshold in some adverse scenarios, indicating increased risks, particularly from a greater share of lending to Group A countries benefiting from the interest rate cap, which, for now, remains appropriate. Gross reserve coverage remains above the 35 percent threshold in the baseline and in the adverse scenarios. The RST comprehensive review, planned for FY 2028, will take stock of experience, consider any policy changes, and assess medium-term resource needs.
• The Catastrophe Containment and Relief Trust (CCRT) is the IMF’s vehicle for delivering debt-service relief to its poorest members when they face qualifying catastrophic events. The CCRT delivered unprecedented support during the COVID-19 pandemic by freeing up resources for additional spending that helped mitigate its impact. Since the pandemic, no qualifying cases or events have required CCRT funding. The CCRT remains underfunded, and the next CCRT review, planned for FY 2027/28, will be an opportunity to address its financing challenges.
• The Heavily Indebted Poor Countries Initiative (HIPC) is nearly complete, although Sudan’s progress toward the Completion Point is still delayed, after reaching the HIPC decision point in 2021. The latest country to reach the Completion Point and receive debt relief was Somalia, in December 2023. After fulfilling its purpose, the Somalia Administered Account, established in 2019 to support IMF debt relief to Somalia, was liquidated and terminated on August 1, 2025².

Poland

Mexico

Building Resilience Through IMF-Supported Programs

Members develop programs with the IMF to meet a variety of needs. The recent Armenia, Mexico, and Rwanda programs illustrate how the Fund has helped countries implement reforms, strengthen resilience, build robust policy frameworks, and restore prosperity.

Armenia has averaged 7 percent real GDP growth over the past three years—an impressive achievement for an upper-middle-income economy, underpinned by strong economic stewardship, sound policies, and a precautionary Stand-By Arrangement (SBA) with the IMF that started in 2022 and was successfully completed in 2025. Under this program, the country also strengthened macroeconomic stability and rebuilt external buffers. Building on this progress, the authorities recently embarked on a new three-year precautionary SBA (with access to 100 percent of quota) to help sustain prudent policies and further boost confidence in the economy. While challenges remain, Armenia’s experience shows how consistent program implementation, supported by IMF technical assistance, can effectively support balancing short-term priorities with medium-term goals, enabling sustained growth amid multiple shocks.

Mexico was the first member to sign up for an IMF Flexible Credit Line (FCL), in 2009, to support its economic reforms. Since then, the country has maintained very strong economic fundamentals and shown a credible track record of policy implementation, allowing the authorities to avoid drawing on the FCL and consistently reduce the level of funds accessible under it. The Mexican economy has shown resilience and stability in the face of heightened external uncertainty, owing in part to very strong macroeconomic policies and institutional frameworks, including a flexible exchange rate regime, a credible inflation-targeting framework, a fiscal responsibility law, and a well-regulated financial sector.

Rwanda

Rwanda has engaged with the IMF along multiple tracks to support reforms in recent years as it works to become a middle-income country. The 2022–25 Policy Coordination Instrument supported postpandemic economic recovery, with structural reforms underpinning economic growth of about 7 percent despite both demand- and supply-side shocks, including a significant fiscal consolidation of about 2 percent of GDP. The 2023–24 Stand-by Credit Facility helped address the short-term financing need caused by flood emergencies. The 2022–24 Resilience and Sustainability Facility focused on longer-term reforms. The Rwandan authorities’ strong implementation focus led to these reforms being completed six months ahead of schedule. Rwanda’s experience is an example of a broader challenge across sub-Saharan Africa: sustaining growth while rebuilding buffers, preserving space for priority investment, and managing climate-related risks. Alongside other strong performers, such as Ethiopia and Uganda, Rwanda shows how sustained reform implementation can help countries navigate repeated shocks and maintain development momentum. This sustained engagement has supported Rwanda in achieving one of the fastest rates of economic growth in Africa.

These examples of the transformative impact of IMF-supported programs underscore the importance of country ownership, early engagement, and sustained reform efforts. The 2026 Review of Program Design and Conditionality will provide a comprehensive analysis of the impact of IMF programs.