IMF Launches New Fund for Climate and Pandemic Support

The International Monetary Fund (IMF) is launching a new fund to help poorer countries deal with long-term challenges. This includes, for example, climate change and pandemics.

 

According to the plans, the Resilience and Sustainability Trust will be available from 1 May.

The new fund is intended for poor countries and countries that are just above that. They can then borrow money for a period of 20 years, whereby the first 10.5 years do not have to be repaid. The intention is that a minimum of 45 billion dollars, converted into more than 41 billion euros, will be in the fund. The first loans could be provided in October.

With the new loan option, the IMF also wants to help more countries in the longer term. Until now, the fund’s lending capabilities have only provided short-term loans to deal with problems such as capital flight and high inflation and medium-term loans. This can be used to tackle fiscal and financial crises.

An earlier anti-poverty fund was only open to the poorest countries that are members of the IMF. The Resilience and Sustainability Trust must be accessible to three-quarters of IMF members, President Kristalina Georgieva said.