The International Monetary Fund (IMF) will temporarily increase funding limits for member nations to help them overcome current economic crisis.
The annual limit under the fund’s General Resources Account will be raised to 200% of quota for a period of 12 months from the current 145%, the IMF said in a statement. Access to cumulative limits was revised to 600% from 435% now.
The changes will provide member countries — particularly emerging markets and developing economies facing vulnerabilities — access to funds without triggering the so-called exceptional access framework that entails tougher conditions. The measure follows its permission last month to five development lenders to use its reserves to help poor nations.
The fund’s staff will re-engage the Executive Board before the end of the 12-month period on a proposal to maintain the higher limits for longer, should the circumstances warrant it, according to the statement.
The IMF’s board also discussed possible changes in access limits under the Poverty Reduction and Growth Trust (PRGT), the lender’s concessional financing arm.
Demand for PRGT, whose access limits were last raised by 45% in 2021, has increased sharply and is expected to grow further given successive shocks, the IMF said. The limits will be reviewed once the fund has sufficient additional resources, it added.
source: myjoyonline