Search Results

You are looking at 1 - 8 of 8 items for :

  • "subsidies to the PRGT" x
Clear All
International Monetary Fund
On February 24, 2012, the Executive Board approved a partial distribution of the general reserve equivalent to SDR 700 million attributed to part of the gold sales windfall profits to all members in proportion to their quotas.
International Monetary Fund

longer-term lending capacity after 2014, under the self-sustaining PRGT. The Fund continues to seek new pledges of bilateral subsidy resources, under the 2009 package. As of October 4, 2012, a total of twenty-six members have committed SDR 213.9 million in additional bilateral subsidies to the PRGT. This is slightly above the lower end of the target range of SDR 0.2-0.4 billion (in end-2008 NPV terms) envisaged under the 2009 financing package. Good progress has been made in securing assurances of new subsidy contributions related to the partial distribution of

International Monetary Fund

-five members have committed SDR 203 million in additional bilateral subsidies to the PRGT. This is broadly in line with the lower end of the target range of SDR 0.2-0.4 billion (in end-2008 NPV terms) envisaged under the 2009 financing package. Additional bilateral pledges are still being sought. The Executive Board approved the partial distribution of the Fund’s general reserve to the membership of SDR 700 million attributed to part of the windfall profits from recent gold sales as part of a strategy to raise SDR 0.5-0.6 billion in subsidy resources (in end-2008 NPV terms

International Monetary Fund

their share of the distribution as new subsidies to the PRGT, and staff will remain in close contact with those members with the goal of maximizing the PRGT’s lending capacity. Further updates will be provided to the Board in due course. 1 See Partial Distribution of the General Reserve Attributed to Windfall Gold Sale Profits (2/1/2012). 2 Similar operational modalities were followed for the partial distribution of SCA-1 balances and deferred charges for the financing of Liberia’s debt relief in March 2008.

International Monetary Fund
New commitments under PRGT-supported programs are expected to increase to about SDR 2 billion in 2012, in part reflecting the large ECF commitment (SDR 0.6 billion) for Bangladesh approved in April. Commitments in the first eight months of 2012 amounted to SDR 1.4 billion and a further SDR 0.6 billion is expected to be committed by year end. This compares to total commitments of SDR 1.2 billion in each of 2010 and 2011. If all elements of the 2009 financing package are secured, the PRGT will have an annual average lending capacity of SDR 2.2 billion remaining under this package for the period 2013–14. Additional
International Monetary Fund
Commitments under new PRGT-supported programs are expected to increase in 2012 in part reflecting the weaker global economic outlook. PRGT commitments in 2011 amounted to SDR 1.2 billion, unchanged from their 2010 level. Staff projections suggest demand could rise to about SDR 2 billion in 2012. If all elements of the 2009 financing package are secured, the PRGT will have an annual average lending capacity of SDR 2.2 billion over 2012–14, or SDR 1.6 billion through 2015. Additional pledges of SDR 1 billion in loan resources are still required to secure the targeted loan resources approved under the 2009 financing package. Fourteen members have so far pledged SDR 9.8 billion in new loan resources for the PRGT compared with the target of SDR 10.8 billion. New borrowing agreements totaling SDR 9.5 billion have been signed with thirteen lenders.
International Monetary Fund. Strategy, Policy, &, Review Department, and International Monetary Fund. Finance Dept.
The Fund is adapting its framework for providing support to low-income countries (LICs) amid rising vulnerabilities. Despite a global economic upswing, many LICs continue to face difficult fiscal and external positions, aggravated by increasing debt levels and natural disasters in many countries. In this context, the Executive Board approved in May 2017 higher annual access limits under the Rapid Credit Facility (RCF) for balance of payment needs arising from large natural disasters and in May 2017 decided to keep the list of Poverty Reduction and Growth Trust (PRGT)-eligible countries unchanged notwithstanding rising per capita income levels. A comprehensive review of PRGT facilities is underway to consider potential adaptations of program modalities and access policies. PRGT demand in 2017 was above the historical average for the third year in a row. New commitments totaled SDR 1.7 billion, the highest level since the global financial crisis. Demand is expected to moderate somewhat in 2018. Longer-term demand estimates are broadly unchanged from last year’s update, and remain generally consistent with the self-sustaining PRGT financing framework adopted in 2012. Loan resources have been successfully replenished, while subsidy contributions remain somewhat below pledged amounts. The 2015 fundraising round mobilized slightly more than the initial target of SDR 11 billion in new loan resources from 15 PRGT lenders, which should provide adequate loan resources into the next decade. By contrast, progress has been limited in collecting the remaining pledged resources for subsidizing the interest on PRGT credit. The PRGT self-sustained capacity remains intact. The PRGT’s self-sustained long term average annual lending capacity is estimated at SDR 1.31 billion, broadly unchanged from last year’ estimate. While capacity estimates are sensitive to a variety of factors, they remain relatively close to the target of SDR 1¼ billion under a number of shocks. The Catastrophe Containment and Relief Trust (CCR Trust) remains underfunded. Funding is below the original targeted amount of new bilateral contributions totaling US$150 million, and the gap is more sizeable when considering the increase of members’ quotas under the 14th General Review of Quotas. To meet funding needs for future qualifying catastrophe relief, it is important that countries with outstanding pledges fulfill their commitments and for additional countries to come forward. Additional financing would be required to provide debt relief to members with protracted arrears. Debt relief under the Heavily Indebted Poor Counties (HIPC) Initiative is winding up, with only two potentially eligible countries left with outstanding Fund credit. These are the protracted arrears cases of Somalia and Sudan. Additional resources would be required to finance the Fund’s participation in debt relief when these countries are ready to undertake the HIPC Initiative process
International Monetary Fund. Strategy, Policy, &, Review Department, and International Monetary Fund. Finance Dept.

going forward. 25 The 2015 and 2017 NPAs with the United Kingdom include an interest rate capped at 0.05 percent, largely below the SDR rate, thus generating potentially large implicit subsidy to the PRGT. 26 This range assumes total loss of projected repayments from a borrower either (i) of median size (in terms of outstanding PRGT credit) or (ii) above the 75 th percentile of all current PRGT borrowers. 27 Only a subgroup of PRGT countries are eligible for assistance under the CCRT. Requirements include: (i) a per capita income below the