IMF, Bank of Spain sign agreement to support lending to C’bean countries
WASHINGTON, United States (CMC) — The International Monetary Fund (IMF), as Trustee of the Poverty Reduction and Growth Trust (PRGT), and the Bank of Spain have signed a borrowing agreement through which Spain will provide up to US$615 million in new loan resources for the PRGT, benefitting the IMF’s low-income member countries, including those in the Caribbean.
On Tuesday, the Washington-based financial institution said the agreement, made effective on February 22, constitutes Spain’s sixth loan contribution to the PRGT.It puts Spain among the first 10 countries to provide new PRGT loan resources under the current fund-raising campaign to increase resources available for concessional lending, the IMF said.Following the executive board’s endorsement, the IMF said the managing director launched this campaign in November 2015 with a target of raising SDR 11 billion in new bilateral loan resources.“Spain’s continued support of the PRGT in loan resources for the IMF’s low-income member countries is a critical element towards sustaining the fund’s concessional lending operations over the medium term,” the IMF noted.Meanwhile, the IMF has also disclosed that it has entered into an amendment of its 2010 note purchase agreement with the Government of Japan, through which Japan will provide an additional amount of up to US$2.5 billion in new loan resources to low-income countries.Accordingly, the total loan amount under the borrowing agreement with the Government of Japan was amended to provide up to SDR 3.6 billion for the PRGT, benefitting the low-income member countries.This amendment, made effective on April 20, constitutes Japan’s fourth loan contribution to the PRGT, and puts Japan among the first 10 countries to provide new PRGT loan resources under the current fund-raising campaign, the IMF said.“Japan’s continued support of the PRGT in loan resources for the IMF’s low-income member countries is a critical element towards sustaining the fund’s concessional lending operations over the medium term,” the statement added.
