The International Monetary Fund (IMF) has said its Resilience and Sustainability Trust for low-income and vulnerable middle-income countries will come into effect on May 1, 2022.

According to the IMF, the trust aims to help low-income and vulnerable middle-income countries address longer-term structural challenges that pose macroeconomic risks, including climate change and pandemics.

The Managing Director, IMF, Ms Kristalina Georgieva, disclosed this in a statement announcing the Trust in Washington, DC.

The RST will serve as a third pillar of the IMF’s lending toolkit, in addition to the General Resources Account and the Poverty Reduction and Growth Trust.

The RST will provide policy support and affordable longer maturity financing – with a 20-year maturity and a 10½ -year grace period – to help build resilience against long-term risks to balance of payments stability.

Credit: Punch

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