IMF Backs New Package To Support World's Poorest During Crisis

PanARMENIAN.Net - The International Monetary Fund, stepping up lending to low-income countries to combat the impact of the global recession, has announced a new framework for loans to the world's poorest nations, including increased resources, a doubling of borrowing limits, zero interest rates until the end of 2011, and more flexible terms.



The IMF's Executive Board approved the package of measures that will sharply increase the loan resources available to low-income countries. The resources—including from the planned sale of IMF gold—are expected to boost the Fund's concessional lending to up to $17 billion through 2014, including up to $8 billion over the next two years.



In addition, the IMF announced zero interest payments up to the end of 2011 for all concessional loans to low-income members and lower interest rates on a permanent basis thereafter. A new set of lending instruments will underpin this increased support.

The crisis originated in the advanced economies and has had its most visible impact on the emerging market countries. But a third wave of the crisis has threatened the remarkable economic achievements many low-income countries have made over the past decade, the IMF said in a press release.