Japan Boosts its Contributions to IMF’s Catastrophe Relief Fund and Poverty Reduction and Growth Trust

IMF News, April 30, 2020

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Canonical URL: Japan Boosts its Contributions to IMF’s Catastrophe Relief Fund and Poverty Reduction and Growth Trust

Press Release No. 20/197; April 30, 2020.
Japan announced a package of measures to respond to the economic challenges of coronavirus, with a stated intention to support the Japanese economy and to underpin global economic stability through contributions to IMF resources for debt relief and concessional financing to low-income countries.
IMF Managing Director Kristalina Georgieva: welcomed Japanese measures “totaling about one fifth of GDP” announced in the April statement of Emergency Economic Measures for New Coronavirus Infections.

Japan is the largest contributor to IMF financial resources and the largest contributor to the Fund’s concessional lending facilities.
PRGT historical contributions:
- Provided close to SDR 9 billion (representing 23 percent of all PRGT loans).
- Provided over SDR 0.9 billion in subsidy grant resources (representing close to 15 percent of donors’ total contributions).
April 2020 contributions:
- Provided an additional US$100 million contribution to the IMF’s Catastrophe Containment and Relief Trust (CCRT) as immediately available resources to support grant-based debt service relief for the poorest and most vulnerable countries to combat COVID-19.
- On April 16, Japan announced it is aiming at doubling its contribution to the Poverty Reduction and Growth Trust (PRGT) from the current SDR 3.6 billion.
- Japan will make available the first SDR 1.8 billion immediately.
- Japan will match an additional SDR 1.8 billion with contributions from other member countries.

Catastrophe Containment and Relief Trust (CCRT):
- Allows the IMF to support international debt relief efforts when poor countries are hit by natural disasters.
- Assists poor countries battling public health crises—such as epidemics like the coronavirus—with grants for debt service relief.
Poverty Reduction and Growth Trust (PRGT):
- Enables the IMF to provide concessional financial support to low-income countries to help them achieve, maintain, or restore a stable and sustainable macroeconomic position consistent with strong and durable poverty reduction and growth.

Managing Director Kristalina Georgieva praised Japan’s global leadership and support for the CCRT and PRGT.
- Stated that these contributions respond to the International Monetary and Finance Committee’s call on the membership to provide necessary support to mitigate the impact of the coronavirus crisis, especially for the poorest and most vulnerable countries.
- Urged other member countries to contribute to both the CCRT and PRGT, noting: “By working together, we can overcome the global challenge facing us and help restore growth and prosperity.”
The Fund is continuing to work with donors to:
- Increase resources available in both the PRGT and CCRT.
- Provide concessional financing and extend the duration of debt relief to the poorest and most vulnerable member countries.
Emphasis on multilateral coordination:
- Multilateral financial institutions such as the International Monetary Fund and the World Bank have committed resources to assist member countries, with a focus on low income developing countries where health systems are the weakest and people are most vulnerable.

IMF Press Release No. 20/197, April 30, 2020.