The Executive Board of the International Monetary Fund (IMF) has completed its review of the Poverty Reduction and Growth Trust (PRGT), paving the way for enhanced support to low-income member countries.

IMF Managing Director Kristalina Georgieva announced a comprehensive reform and financing package aimed at bolstering concessional financing. The new package includes a framework to utilize IMF net income and reserves, expected to generate approximately US$8 billion in additional subsidies for the PRGT over the next five years.

This initiative, combined with previous fundraising efforts, is projected to double the PRGT's long-term annual lending capacity to about US$3.6 billion. Georgieva highlighted the urgent need for support, noting that low-income nations have been grappling with unprecedented shocks and significant financing demands.

The approved reforms will customize IMF assistance to the diverse needs of low-income countries, featuring a new interest rate mechanism that ensures interest-free lending for the poorest nations while maintaining sufficient concessions for others. Additionally, flexible access policies and strengthened safeguards will enhance the effectiveness of Fund support.