News Brief No. 01/113

News Brief: IMF Managing Director Welcomes Japan's PRGF Contribution

November 12, 2001

The Managing Director of the International Monetary Fund (IMF), Mr. Horst Köhler, welcomed today Japan's decision to lend US$1 billion (about SDR 785 million) to the PRGF Trust's Loan Account, which provides financial support to the world's poorest countries.

"The Poverty Reduction and Growth Facility is the centerpiece of our assistance to low-income countries undertaking important macroeconomic adjustment and structural reforms," Mr. Köhler stated.

Japan's contribution will help the IMF to meet the minimum projected financing needed to support the PRGF in the period through 2005. Nine countries have now made pledges to the PRGF Trust totaling SDR 4.1 billion (about US$5.2 billion).

"With these additional resources the IMF can provide significant amounts of concessional resources to its poorest member countries, including to those countries that are particularly affected by the adverse economic impact of the recent events," Mr. Köhler stated. "Japan's contribution will assure that the Fund will have the minimum amount necessary for the continuation of the PRGF. I strongly encourage other member nations to follow Japan's example."