Policy Papers

2025 Update of Resource Adequacy of the Poverty Reduction and Growth Trust, Resilience and Sustainability Trust, and Debt Relief Trusts

May 2, 2025

Download PDF More Formats on IMF eLibrary Order a Print Copy
More formats on IMF eLibrary Order a Print Copy

Preview Citation

Format: Chicago

International Monetary Fund. Finance Dept. "2025 Update of Resource Adequacy of the Poverty Reduction and Growth Trust, Resilience and Sustainability Trust, and Debt Relief Trusts", Policy Papers 2025, 017 (2025), accessed June 13, 2025, https://doi.org/10.5089/9798229009409.007

Export Citation

  • ProCite
  • RefWorks
  • Reference Manager
  • BibTex
  • Zotero
  • EndNote

Summary

This paper provides an update of the resource adequacy of the Fund's Trust funds. Poverty Reduction and Growth Trust (PRGT) finances remain broadly in line with expectations at the completion of the 2024 PRGT Facilities and Financing Review, which included policy reforms and financing measures to ensure adequate and durable financial support to low-income countries (LICs) and restore the PRGT self-sustainability. Following the review, good progress has been made in securing assurances from members under the comprehensive framework to distribute GRA resources to facilitate the generation of additional PRGT subsidy resources. On the Resilience and Sustainability Trust (RST), the agreed process of voluntary bilateral contributions has progressed well. Based on updated projections, there are sufficient resources to meet demand through the RST Comprehensive Review, at which time staff will take stock of experience and assess medium-term resource needs. The RST's reserves remain adequate and the interest rate cap for Group A countries remains appropriate, though risks have increased. The Catastrophe Containment and Relief Trust (CCRT) remains underfunded and its next comprehensive review provides an opportunity to address its financing challenges. The Heavily Indebted Poor Countries (HIPC) initiative is nearly complete, although Sudan's progress towards the Completion Point is delayed. Staff assesses that risks to the finances of the PRGT and RST are appropriately mitigated at this time. Accordingly, and pending the outcome of the CCRT Review, staff does not propose any adjustments or policy changes to the Fund's Trust funds in this annual update.

Subject: Asset and liability management, Credit, Debt Relief, Financial institutions, Financial services, Interest rate ceilings, Loans, Money, SDR interest rate

Keywords: B. RST lending, Catastrophe Containment and Relief Trust (CCRT), Concessional financing, Credit, Credit risk, Debt relief, Fundraising, Global, Heavily Indebted Poor Countries (HIPC), Interest rate ceilings, Loans, Low-income countries, Poverty Reduction and Growth Trust (PRGT), PRGT credit risk Expected, PRGT facilities, PRGT finances, PRGT lending, PRGT lending development, PRGT resource needs, PRGT Review, Resilience and Sustainability Trust (RST), Resource Adequacy, RST lending, SDR interest rate, Subsidy resources

Publication Details

You May Also Be Interested In...

Honduras: Third Reviews Under the Extended Fund Facility and the Extended Credit Facility Arrangements, and Request for Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Honduras

June 13, 2025

New Zealand's Productivity Challenge: New Zealand

June 10, 2025

Peru: 2025 Article IV Consultation-Press Release; and Staff Report

June 10, 2025

Rwanda: Fifth Review Under the Policy Coordination Instrument and Request for the Modification of End-June 2025 Quantitative Target-Press Release; Staff Report; and Statement by the Executive Director for Rwanda

June 10, 2025