## Poverty Reduction and Growth Trust - Review of Interest Rate Structure

_Policy Papers, November 19, 2014_

## Source details

**Canonical URL:** [Poverty Reduction and Growth Trust - Review of Interest Rate Structure](https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/poverty-reduction-and-growth-trust-review-of-interest-rate-structure-pp4953)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2016/12/31/poverty-reduction-and-growth-trust-review-of-interest-rate-structure-pp4953/index.md)
- [Structured JSON version](/en/publications/policy-papers/issues/2016/12/31/poverty-reduction-and-growth-trust-review-of-interest-rate-structure-pp4953/index.json)
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## Bibliographic details
- Published: November 19, 2014
- Series: Policy Papers

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### Summary
- Paper provides the basis for the second review of the interest rate structure approved under the 2009 reforms of the Fund’s concessional lending facilities.
- Publication date: November 19, 2014.

### Key findings
- Based on the application of the Poverty Reduction and Growth Trust (PRGT) interest rate mechanism, PRGT interest rates for 2015–16 would be:
  - Extended Credit Facility (ECF): zero percent
  - Rapid Credit Facility (RCF): zero percent
  - Stand-by Credit Facility (SCF): 0.25 percent
- The interest rate on remaining balances of the Exogenous Shock Facility (ESF) is not set by the PRGT interest mechanism and it would be 0.25 percent.

### Policy implications and next review
- These rates reflect the outcome of applying the PRGT interest rate mechanism under the 2009 reforms of the Fund’s concessional lending facilities.
- In accordance with the PRGT Instrument, the next review of PRGT interest rates will take place by December 31, 2016.

### Subjects covered
- Concessional aid
- Executive Board decisions
- Extended Credit Facility
- Interest rate structures
- Interest rates on loans
- Poverty Reduction and Growth Trust
- Rapid Credit Facility
- Standby Credit Facility

*Source: Poverty Reduction and Growth Trust - Review of Interest Rate Structure (November 19, 2014).*

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## Content in this bundle

- **Poverty Reduction and Growth Trust—Review of Interest Rate Structure**
  - [Poverty Reduction and Growth Trust—Review of Interest Rate Structure (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2014/_111714.pdf.md){rel="alternate" type="text/markdown"}
  - [Poverty Reduction and Growth Trust—Review of Interest Rate Structure (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2014/_111714.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/poverty-reduction-and-growth-trust-review-of-interest-rate-structure-pp4953_