2023 Review of Resource Adequacy of the Poverty Reduction and Growth Trust, Resilience and Sustainability Trust, and Debt Relief Trusts

April 26, 2023

Preview Citation

Format: Chicago

2023 Review of Resource Adequacy of the Poverty Reduction and Growth Trust, Resilience and Sustainability Trust, and Debt Relief Trusts, (USA: International Monetary Fund, 2023) accessed November 8, 2024

Summary

This paper provides an integrated perspective across the Trusts of the Fund. It is the first annual review that combines discussion of the adequacy of the resources of the Fund’s Poverty Reduction and Growth Trust (PRGT) and debt relief trusts, including the Catastrophe Containment and Relief Trust (CCRT), with that of the Resilience and Sustainability Trust (RST). The review of the PRGT assesses recent developments for lending demand, fundraising, and interest rates and compares them to the baseline projections underpinning the July 2021 reforms. A multi-pronged strategy is proposed to address identified strains on PRGT finances while minimizing negative effects for PRGT borrowers and preserving the confidence of PRGT lenders. On the recently established RST, this paper reports its fundraising progress; discusses demand developments and outlook for RST financing; assesses adequacy of loan resources and reserves; and examines, in view of increases in the SDR interest rate, the implications of adopting an interest rate cap at 2¼ percent for the lowest income group eligible for RST borrowing. The attached file has been amended on June 2, 2023 to include the Summing Up that was inadvertently omitted from the bundle

Subject: Financial institutions, Financial regulation and supervision, Financial services, Monetary policy, Money, Political economy

Keywords: Catastrophe Containment and Relief Trust (CCRT), Concessional financing, Credit, Funding, Global, Heavily Indebted Poor Countries (HIPC), Interest rate ceilings, Lending commitment capacity, Liquidity requirements, Loan resource, Loans, Poverty Reduction and Growth Trust (PRGT), Reserve account, Resilience and Sustainability Trust (RST), Resource Adequacy, Resource side, SDR interest rate, Subsidy gap

Publication Details

Pages:

85
Volume:

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DOI:

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Issue:

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Series:

Policy Paper No. 2023/021
Stock No:

PPEA2023021
ISBN:

9798400241888
ISSN:

2663-3493

Notes

Press Release and Executive Board Assessment of 2023 Review of Resource Adequacy of the Poverty Reduction and Growth Trust, Resilience and Sustainability Trust, and Debt Relief Trusts

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