IMF and the Swiss National Bank Sign SDR 500 million Borrowing Agreement to Support Lending to Low-Income Countries | WPN World People News

● The Swiss National Bank agrees to lend US$712.4 million to the Poverty Reduction and Growth Trust benefiting low income member countries

The International Monetary Fund (IMF), as Trustee of the Poverty Reduction and Growth Trust (PRGT), and the Swiss National Bank have signed a borrowing agreement through which Switzerland will provide up to SDR 500 million (about US$712.4 million) in new loan resources for the PRGT benefitting the IMF’s low-income member countries.

This agreement, made effective on August 30, 2017, constitutes Switzerland’s fourth loan contribution to the PRGT and puts Switzerland among the fourteen member countries to have provided new PRGT loan resources under the current fund-raising campaign to date to increase resources available for concessional lending. Following the Executive Board’s endorsement, the Managing Director launched this campaign in November 2015 with a target of raising SDR 11 billion in new bilateral loan resources.

Switzerland’s continued support of the PRGT in loan resources for the IMF’s low-income member countries is a critical element towards sustaining the Fund’s concessional lending operations over the medium-term.

Source: International Monetary Fund