The International Monetary Fund on Thursday said it would revamp its concessional lending programs to better support low-income countries during the COVID-19 pandemic and recovery, and raised the prospect of limited sales of IMF gold to boost its lending capability. The IMF said its executive board last week backed reforms that include raising the access limits for concessional financing for low-income countries by 45%; eliminating access limits for the poorest countries with eligible programs; and maintaining zero-percent interest rates on such loans. The changes are needed given an eightfold increase in IMF lending to low-income countries to $13.2 billion in 2020, and signs that demand for concessional financing will remain high for several years, the IMF said. In a news release, the IMF said its executive board recognized that the push for additional funding from members was "substantial," but underscored the important role the PRGT had played in helping low-income countries respond to the pandemic. It said many directors recommended an early exploration of all financing options, including mobilizing internal IMF resources and exploring gold sales ahead of the second stage.

Source: Mint July 22, 2021 17:15 UTC