IMF Chief urges G20 countries to restore primacy of quota resource
- July 19, 2023
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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IMF Chief urges G20 countries to restore primacy of quota resource
Subject :Economy
Section: External Sector
Context : IMF chief has stressed the need for prioritising quota revision, to enhance lending capacity.
Key Points:
- IMF has nearly $1 trillion in lending capacity based on the quota resources—which are critical to ensure the predictability of the IMF’s firepower
- The resources have shrunk in relative terms. It is thus important to enhance the IMF quota resources by successfully completing the 16th quota review.
- There is also a need to replenish subsidy resources in the Poverty Reduction and Growth Trust (PRGT).
- IMF’s newest instrument, the Resilience and Sustainability Trust (RST) funded through on-lending SDRs.
- The G20 has recently reached its target of committing $100 billion for SDR channeling to vulnerable countries.
Concepts Quota System
Resilience and Sustainability Trust (RST)
Poverty Reduction and Growth Trust (PRGT)
Which IMF instruments can be used to provide support to LICs?
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