The aid money, which can be launched on May 1, will come from rich nations with “foreign interests.”
The International Monetary Fund (IMF) has approved the creation of the so-called Resilience and Sustainability Fund to help low- and middle-income countries deal with long-term adversities such as the effects of climate change or preparing for future pandemics.
The deputy director of the Fund for Strategy, Policies and Supervision, Uma Ramakrishnan, explained at a press conference that the agency’s board of directors approved the new fund on April 13 and that it will launch it on next May 1.
This new tool will complement the existing IMF loan tool and its main distinguishing feature is that it focuses on long-term structural challengesunlike the rest of the programs, more focused on immediate liquidity problems.
“Initially, the fund will focus on mitigating the effects of climate change and improving pandemic preparedness, as both are services of public interest, and may more targets will be added in the future“Ramakrishnan said.
The money will be provided wealthy nations with “foreign interests” and the beneficiaries will be those “who need it most” and who will obtain a “modest” interest rate.
The International Monetary Fund and the World Bank (WB) celebrate their annual spring meeting in a hybrid digital format and with a physical presence in Washington, in a world context marked by rising energy prices and economic instability due to the war in Ukraine.
Source: Eitb
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