Financing for Development: Enhancing the Financial Safety Net for Developing Countries---Further Considerations
Policy Papers, October 25, 2016
Source details
- Canonical URL
- Financing for Development: Enhancing the Financial Safety Net for Developing Countries---Further Considerations
Other formats
Bibliographic details
- Published: October 25, 2016
- Series: Policy Papers
Executive summary and scope
- PRGT-eligible members make considerable use of Fund concessional financing.
- Since 2010, 56 percent of Fund arrangements have involved a PRGT-facility.
- The paper examines issues raised by Executive Directors and the International Monetary and Financial Committee (IMFC) since the issuance to the Board of the June 2015 staff paper on enhancing the financial safety net for developing countries (IMF, 2015a).
- The paper concludes that there is a need to clarify guidance in some areas pertaining to PRGT policies; clarification will be done through an early revision of the LIC Handbook, which is already underway.
Key findings
- High reliance on concessional financing by PRGT-eligible members, with 56 percent of Fund arrangements involving a PRGT-facility since 2010.
- Outstanding questions and issues identified by Executive Directors and the IMFC following the June 2015 staff paper require policy guidance clarification rather than immediate changes to facilities.
Policy conclusions and recommendations
- Clarify guidance in some areas pertaining to PRGT policies.
- Implement clarifications through an early revision of the LIC Handbook (work already underway).
- No changes to the Fund’s concessional facilities are proposed at this juncture.
Forward work program
- A comprehensive review of PRGT (Poverty Reduction and Growth Trust) resources and facilities is planned for 2018.
Publication metadata
- Publication date: October 25, 2016
- Topics: Access to Fund general resources; Concessional aid; Developing countries; Development financing; Financial safety nets; General Resources Account; Poverty Reduction and Growth Trust; Rapid Credit Facility
Financing for Development: Enhancing the Financial Safety Net for Developing Countries---Further Considerations (October 25, 2016).
Content in this bundle
- _102416 - Executive Summary