Search Results

You are looking at 1 - 10 of 20 items for :

  • "PRGS requirement" x
Clear All
International Monetary Fund. Strategy, Policy, &, Review Department, International Monetary Fund. Finance Dept., and International Monetary Fund. Legal Dept.
2018-19 Review of Facilities for Low-Income Countries---Reform Proposals: Review Of The Financing Of The Fund’s Concessional Assistance And Debt Relief To Low-Income Member Countries
International Monetary Fund. Strategy, Policy, &, Review Department, International Monetary Fund. Finance Dept., and International Monetary Fund. Legal Dept.

Instrument would be amended to: (i) rename the Economic Development Document (EDD) as the “Poverty Reduction and Growth Strategy” (PRGS); 1 (ii) require observance of PRGS documentation requirements to members receiving support under SCF arrangements with an initial duration exceeding two years; (iii) extend the deadline for meeting the PRGS requirement from the first review to the second review; and (iv) for countries receiving support under an ECF arrangement that have limited institutional capacity for meeting the PRGS requirements by the second review, allow for the

International Monetary Fund. Strategy, Policy, &, Review Department, International Monetary Fund. Finance Dept., and International Monetary Fund. Legal Dept.

meeting the PRGS requirement specified in subparagraph (i) above, the member may request approval by the Executive Board of an extension of the deadline for issuance of the PRGS up until the fourth review under the ECF arrangement. Any request for an extension shall be made no later than the time of the request for completion of the second review. A member may request approval of a further extension of the deadline for issuance of the PRGS up until the sixth review under the ECF arrangement, provided that: (A) the member can provide adequate justifications based on

International Monetary Fund. Strategy, Policy, &, Review Department, International Monetary Fund. Finance Dept., and International Monetary Fund. Legal Dept.

expressed broad support for strengthening program links to poverty reduction, including by requiring a PRGS whenever an SCF arrangement or PSI has an initial duration exceeding two years. They supported greater flexibility in the timing of PRGS requirements, including extensions for countries that need to focus limited institutional capacity on near-term measures to enhance economic and political stability. Directors welcomed the thorough review of the financing framework to provide concessional financial support to LICs. They concurred with the assessment that the

International Monetary Fund. Strategy, Policy, &, Review Department, International Monetary Fund. Finance Dept., and International Monetary Fund. Legal Dept.

, and PSI, while providing more flexibility on the timeline for producing an EDD . It is proposed that SCF arrangements with an initial duration exceeding two years have the same EDD (PRGS) requirements as the ECF arrangement. To provide flexibility to country authorities, it is proposed to extend the current deadline for meeting the EDD (PRGS) requirement by the first program review to the second program review. As noted above, there are circumstances where a country seeking support under the ECF may need to focus limited institutional capacity on near

International Monetary Fund. Strategy, Policy, &, Review Department, International Monetary Fund. Finance Dept., and International Monetary Fund. Legal Dept.
International Monetary Fund. Strategy, Policy, &, Review Department, International Monetary Fund. Finance Dept., and International Monetary Fund. Legal Dept.

1. The outlook for LICs is adversely affected by the global slowdown, internal fragility, natural disasters, and rising debt vulnerabilities. Key global risks include an escalation of trade tensions and a sudden, sharp tightening of financial conditions. Domestic conflicts, humanitarian crises, and cross-border tensions have elevated economic and political pressures faced by many LICs in the Middle East, Africa and Latin America. At the same time, public debt and debt service have continued to rise for a large share of PRGT-eligible countries, with growing recourse to bilateral and commercial financing on market-based terms.1 Given tighter financial conditions and larger exposure to commercial debt, many LICs are faced with debt roll-over risks, increased debt servicing costs, and mounting risks to debt sustainability, jeopardizing the gains made after HIPC debt relief.

International Monetary Fund. Strategy, Policy, & Review Department, International Monetary Fund. Finance Dept., and International Monetary Fund. Legal Dept.
The note updates and replaces the prior guidance on SMPs, provided in 2003, incorporating changes to the Fund’s lending strategy, and clarifies some operational issues to better guide staff on the use and design of SMPs, while safeguarding even-handed application. Noteworthy changes include clarity on the role of SMPs, specifying the start and end dates of SMPs, clarifying the expected length of SMPs and track record periods, and extensions of SMPs. While many policies are clarified, the principle of flexibility is maintained.
International Monetary Fund
This paper proposes a package of policy reforms and a funding strategy to ensure that the Fund has the capacity to respond flexibly to LICs’ needs during the pandemic and recovery. The key policy reforms proposed include: • raising the normal annual/cumulative limits on access to PRGT resources to 145/435 percent of quota, the same thresholds for normal access in the GRA; • eliminating the hard limits on exceptional access (EA) to PRGT resources for the poorest LICs, enabling them to obtain all financing on concessional terms if the EA criteria are met; • changes to the framework for blending concessional and non-concessional resources to make it more robust and less complex; • stronger safeguards to address concerns regarding debt sustainability and capacity to repay the Fund; and • retaining zero interest rates on PRGT loans, consistent with the established rules for setting these interest rates.
International Monetary Fund. African Dept.
Madagascar has not yet recovered from the pandemic and is struggling with the aftermath of a severe cyclone season and the fallout of Russia’s war in Ukraine. After a sharp contraction of GDP in 2020 (-7.1 percent) and a modest recovery in 2021 (4.3 percent), growth is projected to stall in 2022. Lower demand from trading partners, higher fuel and food prices, and recent weather events are weighing on economic activity and leading to widening fiscal and external deficits in the short term.