PRGT loan accounts under the PRGT Instrument. II. Principal Elements of the Borrowing Agreement 4. Amount of agreement. The maximum amount of new loan resources available under the Agreement shall be the equivalent of up to SDR 350 million. 5. Account designation. The Agreement is for the benefit of the Extended Credit Facility (ECF) Loan Account of the PRGT to finance disbursements under that facility. 6. Drawings on commitments. Drawings can be made through December 31, 2018. The notification period of the intention to draw is at least five
the Fund, as Trustee, to use investment income from the Reserve Account to subsidize PRGT lending with due regard to the primary purpose of the Reserve Account to provide protection to the lenders of the PRGT loan accounts. The proposed amendment authorizes transfers of investment income from the Reserve Account to the General Subsidy Account when the existing balances in the general and special subsidy accounts are inadequate to subsidize the outstanding stock and projected new commitments of PRGT lending. 21 The proposed amendment requires that the Managing
earmarked Subsidy Accounts are exhausted. 5 Secondly, the SRA would also provide, as a second-line backstop, additional reserve coverage and security to PRGT creditors by authorizing the use of its resources to meet obligations to lenders to the PRGT loan accounts (e.g., in case of arrears to the PRGT) as they come due in circumstances where the Reserve Account had been depleted. 6 , 7 It creates, within the PRGT, a second new account, the Deposit and Investment Account (DIA). The purpose of the DIA is to create a vehicle for longer-term borrowing from contributors
will be circulated separately in a supplement. II. IMF Lending to Lics: Recent Experience 9. In the years immediately prior to the pandemic (2017–19), lending to LICs averaged some SDR 1.1 billion per annum , with concessional (PRGT) loans accounting for about five-sixths of the total. Access levels and annual disbursements had been gradually increasing, notably in 2019, but repayments on prior loans—consistent with the revolving nature of Fund lending—meant that the (SDR) stock of credit outstanding was increasing at a modest 3 percent per annum (1 percent
, similar to that used for General Resources Account borrowing. Under such agreements, drawings are structured as the purchase of notes issued by the PRGT. These notes have the same key financial and operational terms as are applicable under PRGT loan agreements. Since 1987, 17 member countries or their agencies have provided loan resources to the PRGT ( Table 3.7 ). As of April 30, 2016, outstanding credit to the PRGT loan accounts was SDR 6.3 billion and SDR 6.1 billion in loan resources remained available for new lending commitments to PRGT-eligible borrowers
on the adequacy of the Reserve Account to protect claims of the creditors to the PRGT Loan Accounts. Paragraph 3. Payments to the Reserve Account Any repayment of principal under Trust loans, to the extent that repayment to a creditor has been made from the Reserve Account due to differences in timing between scheduled principal repayments to the creditor and principal repayments under Trust loans, any payments of overdue principal or interest or interest thereon under Trust loans, and any payments of interest under Trust loans to the extent that payment has
loan resources to the PRGT. Table 3.7 displays the cumulative commitments of lenders to the PRGT loan accounts. Table 3.7 Cumulative Commitments of Lenders to the Poverty Reduction and Growth Trust (Millions of SDRs as of December 31, 2017) Lender Loan Commitments Amount Drawn Amount Outstanding National Bank of Belgium 1,050.0 700.0 377.97 Brazil 500.0 — — Government of Canada 1,700.0 851.5 137.3 Government of China 200.0 200.0 2.2 People’s Bank of China 1,600.0 793.6 758