How much funding does the IMF aim to raise for the new trust?

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The IMF Aims to Raise at Least US$45 Billion for its New Resilience and Sustainability Trust

The International Monetary Fund (IMF) has established the new Resilience and Sustainability Trust (RST) with the objective of raising a minimum of US$45 billion (approximately RM190.3 billion). This trust is designed to assist low-income and a majority of middle-income nations in addressing significant, long-term global challenges. The RST is set to become operational from May 1, marking a significant step in the IMF's commitment to supporting its member countries.
Purpose of the Resilience and Sustainability Trust

The primary function of the Resilience and Sustainability Trust is to provide financial assistance to countries facing protracted issues such as climate change and pandemics. This new facility represents the IMF's inaugural program specifically created to help member states manage the balance of payments risks that arise from these enduring challenges. It aims to complement existing IMF lending instruments by offering a dedicated channel for addressing long-term vulnerabilities.
Eligibility and Funding Mechanism

Nearly three-quarters of the IMF's 190 member countries will be eligible to access funds from the RST. The trust is intended to amplify the impact of the US$650 billion allocation of Special Drawing Rights from the previous year. By enabling wealthier member nations to channel their reserves, the RST can provide crucial support to vulnerable economies grappling with threats to their economic stability.
Lending Terms and Conditions

The Resilience and Sustainability Trust will offer financing with favourable terms, including affordable interest rates and extended repayment periods. Specifically, loans will have a 20-year maturity with a 10-1/2-year grace period. To qualify for lending, countries must demonstrate credible policy and reform measures, maintain sustainable debt levels, possess adequate repayment capacity, and be engaged in a concurrent IMF financing or non-financing program. The IMF anticipates commencing lending operations under the RST by October.

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How much funding does the IMF aim to raise for the new trust?

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