2026 Update of Resource Adequacy of the Poverty Reduction and Growth Trust, Resilience and Sustainability Trust, and Debt Relief Trusts

International Monetary Fund

No 2026/004, IMF Policy Papers from International Monetary Fund

Abstract: This paper provides an update of the resource adequacy of the Fund’s concessional financing trusts. Poverty Reduction and Growth Trust (PRGT) finances remain adequate, broadly in line with expectations at the completion of the 2024 PRGT Facilities and Financing Review and the 2025 adequacy update. The lending outlook is largely unchanged, with projected additional demand in 2026-27 expected to offset lower-than-anticipated new loan commitments in 2025. While progress has been made in securing assurances from members under the framework to distribute GRA resources to facilitate the generation of additional PRGT subsidy resources, broader support is essential to reach the 90-percent threshold. On the Resilience and Sustainability Trust (RST), based on updated projections, there are sufficient resources to meet the demand pipeline at least through 2028. The RST’s reserves remain adequate and the interest rate cap for Group A countries remains appropriate, though risks have increased. The Catastrophe Containment and Relief Trust (CCRT) remains underfunded and its next comprehensive review provides an opportunity to address its financing challenges. The Heavily Indebted Poor Countries (HIPC) initiative is nearly complete, although Sudan’s progress towards the Completion Point continues to be delayed. Staff assesses that risks to the finances of the PRGT and RST are appropriately mitigated. Based on its assessment of the trusts, and pending the outcome of the planned CCRT Review and amid ongoing efforts to secure PRGT assurances, staff does not propose any adjustments or policy changes pertaining to the Fund’s concessional financing trusts.

Keywords: Poverty Reduction and Growth Trust (PRGT); Resilience and Sustainability Trust (RST); Catastrophe Containment and Relief Trust (CCRT); Heavily Indebted Poor Countries (HIPC); Resource adequacy; Concessional financing; Fundraising; PRGT Review; PRGT lending; RST lending; Credit risk; Debt relief; Subsidy resources; Low-income countries; PRGT subsidy assurances; GRA distribution framework; Interim Placement Administered Account (IPAA); Self-sustained annual lending capacity; Resilience and Sustainability Facility (RSF); Rst resource; Prgt assurance; Prgt finances; Prgt credit risk; IMF staff; Sovereign debt restructuring; Credit; Debt service; Loans; Global; Middle East; Central Asia (search for similar items in EconPapers)
Pages: 62
Date: 2026-03-26
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=574972 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfpps:2026/004

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Policy Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().