October 3, 2016
- IMF interest rates on concessional lending will continue to be set at zero for as long as and whenever global interest rates are low
Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), welcomed the decision taken today by the IMF Executive Board to set interest rates to zero for all of the Fund’s concessional lending facilities for at least the next two years, through end-2018.
The decision is based on the Executive Board’s approval of a modification of the mechanism governing the Poverty Reduction and Growth Trust (PRGT) interest rates. Under the modified mechanism, rates will continue to be set at zero for as long as and whenever global interest rates are low.
In noting the development, Ms. Lagarde stated: “Many of the Fund’s low-income members have put in place significant efforts to strengthen their economies and continuously fight poverty. While they have made progress, they continue to face challenges related to current global economic developments.
“The continued availability of zero interest rates on all IMF concessional facilities will be crucial in helping many of them absorb future shocks and continue their efforts to achieve deeper and more sustainable economic growth in line with the sustainable development goals. I wish to thank all our members for their support in this important effort.”