Poverty Reduction and Growth Trust-Review of Interest Rate Structure
June 26, 2019
Download PDF
More Formats on IMF eLibrary
Order a Print CopySummary
This paper reviews the Poverty Reduction and Growth Trust (PRGT) interest rate structure for the period July 2019–June 2021. Since the interest rate mechanism was first established in 2009, no interest has been charged on PRGT credit. In line with the package of reforms proposed in the parallel Review of LIC Facilities, this paper proposes to align interest rates on the SCF with those on the ECF. Based on the average SDR rate over the most recently observed 12-month period, the proposed revised interest rate mechanism would result in zero interest rates on both ECF and SCF credit for the period July 2019–June 2021.
Subject: Credit, Credit ratings, Financial institutions, Financial services, Loans, Money, Poverty, Poverty reduction strategy, SDR interest rate
Keywords: Credit, Credit ratings, Global, interest rate, interest rate mechanism, Loans, Poverty reduction strategy, PP, PRGT, PRGT financing, PRGT interest rate mechanism, PRGT interest rates, rate, SCF credit, SDR interest rate
Pages:
15
Volume:
2019
DOI:
Issue:
023
Series:
Policy Paper No. 2019/023
Stock No:
PPEA2019023
ISBN:
9781498321556
ISSN:
2663-3493
