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Whither or Wither the PRGT? Funding Options for a Cash-Strapped PRGT

The IMF’s Poverty Reduction and Growth Trust (PRGT) faces large financing needs. Unprecedented levels of lending since the start of the pandemic – four to five times higher than before the pandemic – have seriously depleted the PRGT’s subsidy resources. If these are not replenished, the PRGT’s lending capacity from 2025 onwards could collapse to well below its pre-pandemic level.

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