Poverty Reduction and Growth Trust-Review of Interest Rate Structure

June 26, 2019

Preview Citation

Format: Chicago

Poverty Reduction and Growth Trust-Review of Interest Rate Structure, (USA: International Monetary Fund, 2019) accessed November 21, 2024

Summary

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.

Subject: Credit, Credit ratings, Financial institutions, Financial services, Loans, Money, Poverty, Poverty reduction strategy, SDR interest rate

Keywords: Credit, Credit ratings, Global, Interest rate, Interest rate mechanism, Loans, Poverty reduction strategy, PP, PRGT, PRGT financing, PRGT interest rate mechanism, PRGT interest rates, Rate, SCF credit, SDR interest rate

Publication Details

Pages:

15
Volume:

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DOI:

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Issue:

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Series:

Policy Paper No. 2019/023
Stock No:

PPEA2019023
ISBN:

9781498321556
ISSN:

2663-3493

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