A Board-endorsed effort to raise SDR 11 billion in new Poverty Reduction and Growth Trust (PRGT) loan resources needed to sustain the Fund’s concessional lending operations is well underway. Staff is now engaging with 16 interested loan providers bilaterally with a view to having firm pledges in line with the target by the 2016 Annual Meetings and a critical mass of new loan agreements in place by end-2016. To date, committed new loan resources amount to half of the SDR 11 billion fundraising target.
between making the GLA the “second line of defense” and providing PRGTlenders with greater clarity about the drawdown prospects of loan agreements to the GLA, this paper proposes to amend the PRGT Instrument.
3. This paper also sets out staff’s understandings on the implications of a negative six-month derived SDR interest rate on outstanding claims under certain PRGT Borrowing Agreements . In the view of staff, there is no basis under the current PRGT Instrument and the existing borrowing agreements to charge lenders a negative rate. Consequently, a zero percent
has been drawn from the Reserve Account to repay PRGTlenders.
5. Six members (six instances) incurred short-term arrears (less than six months) in the 12-month period to end-June 2010 . Of these, four members (four instances) incurred short-term arrears in the first half of 2010, similar to what was reported at the previous review for the 12-month period to end-June 2009. These short-term arrears were related to technical difficulties that faced these members, and were all settled before a formal communication from the Managing Director was called for under the
This paper reviews recent developments in the financing of the Fund’s concessional lending and debt relief since the October 2014 Update. It presents the latest available data including the new commitments of loan resources to the PRGT and the sources of initial financing for the newly created CCR Trust, replacing the PCDR Trust. It also discusses the PRGT’s potential self sustaining capacity in the context of longer term projections of the demand for concessional lending and robustness to alternative scenarios.
The Fund, as Trustee of the Poverty Reduction and Growth Trust (PRGT or Trust), has entered into new borrowing agreements with the National Bank of Belgium (Belgium) and the Swiss National Bank (Switzerland), effective on August 30, 2017. These new borrowing agreements with Belgium and Switzerland provide new resources equivalent to SDR 350 million and SDR 500 million, respectively, for a total amount equivalent to SDR 850 million in new PRGT lending resources.