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Financing a possible expansion of the IMF’s Support for LICs

Financing a possible expansion of the IMF’s Support for LICs

The IMF’s concessional support for low-income countries (LICs) is provided primarily through the Poverty Reduction and Growth Trust (PRGT). Since the start of the pandemic, lending from the PRGT has risen very sharply in response to the unprecedented and urgent needs of LICs; total PRGT credit outstanding nearly doubled during 2020 to far exceed past peaks. Given the likelihood that these needs will continue to rise and persist for many years, there is an urgent need to ensure that the PRGT has adequate resources to face this challenge.