Connect with us

Business

Nigeria, Others To Benefit As IMF Unveils $45b Fund

Published

on

IMF
Kindly Share This

Nigeria, Others To Benefit As IMF Unveils $45b Fund

IMF

The IMF plans to raise at least $45 billion for a new trust to help “low-income and vulnerable middle-income countries” cope with protracted challenges like pandemics and climate change, it announced Wednesday.

According to the World Bank collection of development indicators, Nigeria is among lower-middle-income countries with a gross national income (GNI) per capita of $2,157 in 2019.

The Washington-based crisis lender’s Resilience and Sustainability Trust (RST) will come into effect May 1 and is in addition to a $650 billion boost to reserve assets called Special Drawing Rights (SDR) allocated earlier this year.

“As the world is confronting consecutive global shocks, we must not lose sight of the critical actions needed today to ensure longer-term resilience and sustainability,” IMF Managing Director Kristalina Georgieva said in a statement announcing the new trust.

imf
The World Bank headquarters in Washington, DC, on April 13, 2022. The Spring meetings will take place virtually from April 22-25. Stefani Reynolds / AFP

She added that the goal of the trust is to redistribute funds from wealthier countries to more vulnerable ones as members look to support global economic recovery from the Covid-19 pandemic.

Around three-quarters of the IMF’s 190 members will be eligible to borrow from the new tool, it estimates.

Read Also It’s Not Looking Good For Naira Ahead Of Easter (See New Exchange Rate To The Dollar)

First proposed last year, the RST will offer extended repayment periods, with a 20-year maturity and 10-year grace period.

In order to access the money, member countries will need “a package of high-quality policy measures,” have sustainable debt, and “adequate capacity to repay,” the IMF said.

It added that the trust will require close collaboration with the World Bank and other international financial institutions.

“The RST will amplify the impact of the US$650 billion SDR allocation implemented last year by chaneling resources from economically stronger members to countries where the needs are greatest,” said Georgieva.

The increase was the biggest ever for SDRs, which are international reserve assets that aid governments in protecting their financial reserves against global currency fluctuations and also help the IMF calculate loans and interest rates.

AFP

Kindly Share This
Dear Reader, Fetching good and credible news information is tedious and requires huge finance. We are soliciting support from our readers and fans. For as low as N1,000  you can be a part of our golden membership. Your support would go a long way in assisting us to continue guaranteeing quality news to our readers across the globe. Bank transfers can be made to: Zenith Bank 1014932118 Ireporteronline communications Inquiries: Email: [email protected] Whatsapp: +234 7032341798 FOR BUSSINESS ADVERT CLICK THE WHATSAPP IMAGE BELOW
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Advertisement

Trending