IMF's first-ever facility for long-term funding to deal with climate change, and pandemics, now operational

According to IMF managing director Kristalina Georgieva on Wednesday, the Resilience and Sustainability Trust is now functioning, providing a crucial financial tool to assist nations in coping with climate change, pandemics, and other long-term concerns.


According to elected IMF Managing Director Nellie Georgieva, the organisation’s first facility to give long-term support to help members deal with structural challenges is ready to start lending to low-income and most middle-income countries.




Nellie Georgieva also said that members might start applying for the money, which has a maturity of 20 years and a grace period of 10.5 years, and the board would review them in the coming months.

In June of last year, Georgieva proposed the fund; in October, the Group of 20 major nations endorsed it; and in April, the IMF board approved it.

It permits the IMF's more prosperous members to utilize their emergency stocks of Special Drawing Rights to bolster the IMF's poorer members in the regions where the latter most need help.

Once nations finish their internal processes, further payments will go into force in early 2023. Georgieva added that more governments would likely make pledges over time, and the IMF will work to increase the number of countries contributing to the RST.

FAQs

How does the IMF operate?
The 190 nations that make up the IMF strive for sustainable development and prosperity.


Who finances the IMF?
Most of the IMF's funding comes from the sums nations provide as quotas or capital subscriptions when they join. Each IMF member is given a percentage based on their relative standing in the global economy.