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Poverty Reduction and Growth Trust-Review of Interest Rate Structure
Author:
International Monetary Fund. Finance Dept.
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International Monetary Fund. Strategy, Policy, &amp
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Review Department
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Series:
Policy Papers
Volume/Issue:
Volume 2019: Issue 023
Language:
English
Publication Date:
26 Jun 2019
DOI:
https://doi.org/10.5089/9781498321556.007
ISBN:
9781498321556
ISSN:
2663-3493
Pages:
15
Keywords:
PP; interest rate; PRGT interest rate mechanism; rate; PRGT interest rates; PRGT; PRGT financing; interest rate mechanism; SCF credit; Credit; Loans; SDR interest rate; Credit ratings; Poverty reduction strategy; Global
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This paper reviews the Poverty Reduction and Growth Trust (PRGT) interest rate structure for the period July 2019–June 2021. Since the interest rate mechanism was first established in 2009, no interest has been charged on PRGT credit. In line with the package of reforms proposed in the parallel Review of LIC Facilities, this paper proposes to align interest rates on the SCF with those on the ECF. Based on the average SDR rate over the most recently observed 12-month period, the proposed revised interest rate mechanism would result in zero interest rates on both ECF and SCF credit for the period July 2019–June 2021.
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Cover Policy Papers
Policy Papers
ISSN:
2663-3493
Publisher:
International Monetary Fund