IMF Executive Board approves measures for financing of debt relief
On December 8, the IMF stated in a press release that the Executive Board had made the decisions that would enable the IMF to begin making its contributions to the strengthened Heavily Indebted Poor Countries Initiative (HIPC) and to the Poverty Reduction and Growth Facility (PRGF) (previously the Enhanced Structural Adjustment Facility). To finance its share of the PRGF-HIPC Trust, the IMF will use contributions from member countries and the IMF itself, including resources derived from off-market transactions of its stock of gold. The IMF has already begun to receive bilateral contributions and expects to obtain further significant amounts of contributions to the Trust once members finalize their pledges.
The press release states that the IMF will begin off-market gold transactions within the next few days. The investment income from the profits generated by these transactions will be used to provide debt relief under the HIPC Initiative. To date, the Board has authorized the transfer of about two-thirds of the investment income for this purpose. It is expected to review financing for the PRGF-HIPC Trust in the spring of 2000, including the transfer of the remaining investment income.
The full text of Press Release No. 99/57 is available on the IMF’s website: http://www.imf.org.