IMF to temporarily raise borrowing limits to aid vulnerable countries

THE International Monetary Fund (IMF) says its executive board has agreed to temporarily increase the limits on member countries’ annual and cumulative access to IMF loan resources to help them cope with a particularly challenging and uncertain environment.

In an announcement late on Monday (Mar 6), the Fund said its cumulative lending limits were increased to 600 per cent of a country’s quota, or shareholding in the fund, from a previous limit of 435 per cent. The 12-month borrowing limit was raised to 200 per cent of quota from 145 per cent.

These changes will provide member countries – “particularly emerging markets and developing economies – that face increased financing pressures and vulnerabilities” access to more Fund financial support, the IMF said in a statement.

The Fund, which has about US$1 trillion in total lending resources, said the executive board also discussed possible changes in access limits under the Poverty Reduction and Growth Trust (PRGT), its concessional lending arm for low-income countries.

The IMF added it would review PRGT access limits once sufficient additional resources had been pledged to the fund by wealthier member countries. Those limits were last raised by 45 per cent in 2021. REUTERS