IMF Approves $45 Billion Fund to Support Economic Resilience in Poor and Middle-Income Countries
By Sarmad Khan
The International Monetary Fund has approved the creation of Resilience and Sustainability Trust (RST) and seeks to raise $45 billion for the new funding facility to help member-nations deal with longer-term structural challenges that pose macroeconomic risks including climate change and pandemics.
The new facility, which aims to help low-income and vulnerable middle-income countries, will come into effect on May 1, IMF managing director Kristalina Georgieva said in a statement on Thursday.
The trust will “amplify the impact” of the $650bn special drawing rights allocated in August last year by channelling resources from countries with strong external financial positions to vulnerable countries where they are needed the most.