The aid money, which can be launched on May 1, will come from rich countries with ‘foreign interests’.
The International Monetary Fund (IMF) has approved the creation of the so-called Resilience and Sustainability Fund to help low- and middle-income countries deal with long-term adversities, such as the effects of climate change or preparing for future pandemics.
The deputy director of the Fund for Strategy, Policy and Supervision, Uma Ramakrishnan, explained in a press conference that the agency’s board of directors approved the new fund on April 13 and that it will launch on April 13. next May 1
This new instrument complements the existing IMF lending tool and its main distinguishing feature is that it focuses on: long-term structural challengesunlike the rest of the programs, more focused on immediate liquidity issues.
“Initially, the fund will focus on mitigating the effects of climate change and improving pandemic preparedness, as both services are of public interest and potentially more targets will be added in the future‘ said Ramakrishnan.
The money will be provided rich countries with “foreign interests” and the beneficiaries will be the ones “who need it most” and who will get a “modest” interest rate.
The International Monetary Fund and the World Bank (WB) celebrate their annual spring meeting in hybrid digital form and with a physical presence in Washington, in a global context marked by rising energy prices and economic instability caused by the war in Ukraine.
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
