The International Monetary Fund has
announced "unprecedented measures" to boost lending to low-income countries.
IMF said Wednesday the measures could increase concessional lending up to $17 billion.
set of reforms, which are aimed at improving our engagement and effectiveness
in low income countries, are truly unprecedented in the history of the fund,"
says Reza Moghadam, IMF director of strategy, policy and review.
Over and above G20 mandate
reforms "go well beyond the mandate" of the G20 summit, he says, which last
April pledged large sums for loans to poor nations. The summit was called in response to the
global economic crisis.
been engaged in a series of reforms since the onset of the crisis to both
respond to the crisis and build a more effective IMF beyond the crisis," he
for the enhanced lending measures may come in part from the sale of IMF gold
package of reforms contains the availability of concessional financing of about
$17 billion over the next six years," he says.
Putting it in perspective
average concessional lending in the fund for the last three years has been
about $1 billion dollars per year…. So
far this year, we have lent or committed about $3 billion. So more than the last three years put
together has been committed just in the first six months of this year," he
He expects about $8 billion will be
spent by the end of next year alone.