Poverty Reduction and Growth Trust (PRGT)

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The PRGT is the Fund’s main vehicle for providing concessional financing to low-income countries (LICs).
PRGT concessional loans support well-designed economic programs that help catalyze additional financing from donors, development institutions, and the private sector.
PRGT-supported programs play a central role in creating the environment for successful debt resolution in distressed countries.
The PRGT can provide emergency support when shocks hit, as evidenced during the pandemic.

The PRGT is designed to fund itself over time, using earnings from its investments to provide concessional loans, including interest-free financing to the poorest LICs.
High demand for concessional financing, combined with rising interest rates, put significant strains on PRGT finances following the COVID-19 pandemic and subsequent major shocks.
In October 2024, with unanimous support from its membership, the IMF Executive Board approved a comprehensive package of policy reforms and financing measures for the PRGT.
The reforms aim to enable a long-term self-sustained lending capacity of SDR 2.7 billion a year, more than double the pre-pandemic level.

Once IMF members have provided assurances that they will collectively transfer at least 90 percent of the total principal (or the equivalent in new financing) in the Interim Placement Administered Account (IPAA) to the PRGT (SDR 6.2 billion in nominal terms, SDR 5.9 billion in net present value terms), each member’s share of the IPAA principal will become available and transferable from the IPAA according to their instructions.
Since the Executive Board approved the distribution framework, assurances worth 45.9 percent of the total amount to be distributed have been received.
As part of annual income reviews:
- The Executive Board approved the first annual distribution of net operational income of SDR 1.38 billion from the GRA in April 2025; the actual transfer to the IPAA took place on June 1, 2025.
- The Executive Board approved the second annual distribution of net operational income of SDR 1.38 billion from the GRA in April 2026; the actual transfer to the IPAA took place on June 2, 2026.
The IMF notes that broad participation from the membership is essential for the success of the GRA distribution in support of the PRGT.

Generate SDR 2.3 billion through implementation of a tiered interest rate mechanism:
- The poorest LICs will continue to benefit from interest-free lending.
- Higher-income LICs will be charged a positive, yet still concessional, interest rate.
Secure SDR 0.5 billion from additional bilateral subsidy contributions.
Raise SDR 0.4 billion by extending the suspension of the reimbursement of PRGT administrative costs to the GRA for five years.

Subsidy Target: 2,300 (In SDR millions) ; 3,073 (In USD millions)
Total Subsidy Pledges 2/: 2,300 (In SDR millions) ; 3,073 (In USD millions)
of which, subsidy PLEDGEs effected: 1,949 (In SDR millions) ; 2,603 (In USD millions)
Loans target: 12,600 (In SDR millions) ; 16,832 (In USD millions)
Total Loan EFFECTIVE Pledges: 14,650 (In SDR millions) ; 19,571 (In USD millions)

Policy Paper: 2024 Review Of The Poverty Reduction And Growth Trust Facilities And Financing — Reform Proposals.
Frequently Asked Questions on the Poverty Reduction and Growth Trust Review.
Statement by IMF Managing Director on the Review of the Poverty Reduction and Growth Trust.
2025 Update of Resource Adequacy of the Poverty Reduction and Growth Trust, Resilience and Sustainability Trust, and Debt Relief Trusts, May 2025.
Macroeconomic Developments and Prospects in Low Income Countries – 2025, April 2025.
Analytical and working papers on catalytic impact of IMF lending and related topics, including WP/24/134 and WP/22/261.