IMF Executive Board Temporarily Increases Access Limits under the Poverty Reduction and Growth Trust

IMF News, December 15, 2023

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Canonical URL: IMF Executive Board Temporarily Increases Access Limits under the Poverty Reduction and Growth Trust

Decision date: December 7, 2023 (press release dated December 15, 2023).
Temporary changes effective until end‑2024.
Annual access limit under the PRGT raised from 145 percent of quota to 200 percent of quota.
Cumulative access limit under the PRGT raised from 435 percent of quota to 600 percent of quota.
Per arrangement cap on PRGT resources under the blending policy raised from 145 percent of quota to 200 percent of quota until end‑2024.

Purpose: to better support the Fund’s low‑income members in a particularly challenging and uncertain global economic environment.
The PRGT is the Fund’s concessional lending arm (currently at zero percent interest rates).
In March 2023, the IMF Executive Board decided an interim review of PRGT access limits should follow substantial progress on the PRGT first‑stage fundraising target of SDR 2.3 billion.
The SDR 2.3 billion first‑stage target was met in October 2023.
Prior review: July 2021 set PRGT normal annual and cumulative access limits at 145 and 435 percent of quota respectively, aligned with then prevailing GRA access limits.
Since July 2021, GRA access limits were temporarily raised to 200 / 600 in March 2023.

The temporary increase aims to:
- Allow more flexibility in Fund support to countries with large balance of payments needs.
- Facilitate implementation of strong economic programs to maintain or restore sustainable economic positions and inclusive growth.
Directors noted potential increase in the volume of PRGT financing and emphasized that PRGT funding remains a concern for achieving a self‑sustained PRGT.
Directors stressed the importance of maintaining the catalytic role of Fund financing.
Access limits and norms are neither ceilings nor determinants of program access; individual cases should be evaluated on merits using standard criteria, including:
- Strength of policies under the program.
- Level of access sought.
- Debt sustainability.

Most Directors supported the temporary increases to 200 percent (annual) and 600 percent (cumulative) of quota until end‑2024.
Views among Directors included:
- Some Directors: alignment of PRGT and GRA access limits is important for evenhanded treatment.
- A few Directors: PRGT and GRA are separate and access limits need not align.
- A few Directors: many LICs with high PRGT needs can already access above normal limits subject to safeguards.
- A number of Directors: importance of maintaining catalytic role of Fund financing and strong safeguards.
- A few Directors: the proposal to raise PRGT access norms to 200 percent of quota for any three‑year ECF arrangement (prorated for longer duration) and for any 18‑month SBCR arrangement (prorated for different duration) had not been sufficiently justified.
Directors agreed to keep unchanged the triggers for enhanced safeguards and for high access procedures to mitigate risks despite the higher access limits.
Directors concurred with proposed transitional rules in case access limits revert to lower levels after 2024.
Strong safeguards were emphasized to mitigate risks given pressure on PRGT resources and elevated debt vulnerabilities among LICs.

The forthcoming Review of the Fund’s Concessional Facilities and Financing, expected to be completed in the Fall of 2024, will cover:
- Review of facilities, including access limits.
- PRGT financing, including measures to ensure long‑term financial sustainability of the trust.
Directors provided suggestions to guide staff’s review to ensure thorough analysis and comprehensive evaluation of options.
Directors discussed staff’s preliminary considerations on extending the temporarily higher GRA access limits through end‑2024 to allow time for a comprehensive review of access limits that could become effective with any quota increase under the Sixteenth General Review of Quotas.
- Most Directors looked forward to staff’s proposal early next year underpinned by a thorough analysis.
- Some Directors stressed that an extension of the temporarily higher GRA access limits should be assessed on its own merits.

Press Release No. 23/454, IMF Communications Department, December 15, 2023.