IMF Shifts Approach to Low Income Countries and Special Drawing Rights

Before its summer recess, the International Monetary Fund board tackled two key operational issues – future concessional support for low income countries and ‘channelling’ special drawing rights. By initial appearances, the Fund is moving boldly forward, but the fanfare exceeds reality, with more grant resources being sorely needed.

IMF concessional LIC lending is extended through the poverty reduction and growth trust, an endowment largely funded through national contributions and built to sustain annual lending of $1.75bn interest free, essentially under IMF programmes.