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| ARTICLE V, SECTION 2(b) | ||||
| Technical and Financial Services | ||||
| Financial Services | ||||
| Poverty Reduction and Growth Trust | ||||
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Fund Concessional Financial Support for Low-Income Countries—Responding to the Pandemic—Blended Access to Financing Under the PRGT and the GRA 1. A member that is included in the list of members annexed to Decision No. 8240-(85/56) SAF, as amended (i.e., a member eligible for financing under the Poverty Reduction and Growth Trust (PRGT), hereinafter “member”) is a “Presumed Blender” in accordance with the criteria set forth below: a. Income: A member meets the income thresholds for presumed blending if its annual per capita gross national income (GNI) has exceeded the prevailing operational cutoff for assistance from the International Development Association (IDA) by at least 5 percent for two consecutive years (the “income threshold”). Notwithstanding the above, where a member does not meet the income criterion and its GNI per capita does not exceed the IDA operational cutoff by at least 5 percent as of the year before a new rebased GDP is published, it shall not be deemed to have met the income criterion until the member’s annual GNI per capita has exceeded the prevailing IDA operational cutoff by at least 5 percent for two consecutive years, not including the year in which the official rebased GDP data is released. For a transitional period, with regard to a member which completed its GDP rebasing after March 11, 2020 and not later than April 30, 2025, the income criterion will be met when the member’s annual GNI per capita has exceeded the prevailing IDA operational cutoff by at least 5 percent for two consecutive years after, and not including, 2025. Once a member has met the income threshold, it shall be deemed to continue to meet the threshold of 95 percent of the IDA operational cut-off. b. Absence of debt vulnerabilities that limit market access: A member that meets the income threshold as defined in Paragraph 1.a shall be presumed to blend unless it faces debt vulnerabilities that limit its access to international financial markets. A member will be considered to face debt vulnerabilities that limit its access to international financial markets if it is (i) in debt distress or (ii) at high risk of debt distress and either (a) does not meet the criterion of capacity to access international financial markets on a durable and substantial basis for the purpose of graduation from the PRGT eligibility as set forth in Paragraph 1(C)(1)(ii) of Decision No. 14521-(10/3), adopted January 11, 2010, as amended (the “PRGT Eligibility Decision”) or (b) is a “small country” or a “microstate”, as such terms are defined in paragraph 1 (D) of the PRGT Eligibility Decision. 2. A request by a Presumed Blender for access to PRGT resources shall be approved only in a blend with access to resources in the General Resources Account (GRA). The mix of PRGT and GRA resources shall be provided in a ratio of one to two of PRGT resources to GRA resources, subject to a per arrangement cap on access to PRGT resources set at the norm applicable to ECF and SCF arrangements and subject to the overall limits on access to the PRGT set out in Section II, Paragraph 2 of this Instrument. 3. During the period from December 7, 2023 to December 31, 2024, the cap on access to PRGT resources per arrangement specified in paragraph 2 above shall be increased to 200 percent of quota. The expiration of the temporary increase in the per arrangement access cap set forth in this paragraph shall not affect commitments under existing arrangements that were approved prior to such expiration. The cap on access to PRGT resources of 200 percent of quota per arrangement shall be reduced to 135 percent of quota immediately upon an Executive Board determination that the general conditions for the effectiveness of quota increases under the Sixteenth General Review of Quotas specified in paragraph 3 of the Board of Governors Resolution No. 79-1 (December 15, 2023) have been met. Decision No. 17082-(21/71), July 14, 2021, Amended on December 15, 2023, and by 17827-(24/98), October 15, 2024 | ||||
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