IMF and Norway Sign SDR 300 Million Borrowing Agreement to Low-Income Countries

(FILES): This April 5, 2007 file photo shows the International Monetary Fund logo at IMF headquarters on Pennsylvania Avenue in Washington, DC. The IMF announced November 2, 2009 the sale of 200 tonnes of gold to India's central bank, nearly half the amount targeted for sale over the coming years to shore up IMF finances. The total sales proceeds are equivalent to 6.7 billion dollars, the IMF said. AFP PHOTO / Files / TIM SLOAN (Photo credit should read TIM SLOAN/AFP/Getty Images)
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The International Monetary Fund (IMF), as Trustee of the Poverty Reduction and Growth Trust (PRGT), and the Norwegian Ministry of Finance, representing the Kingdom of Norway, have signed a borrowing agreement through which Norway will provide up to SDR 300 million (about US$407 million) in new loan resources for the PRGT benefitting the IMF’s low-income member countries. Norway’s new loan contribution will be equally split between the Rapid Credit Facility (RCF) and the Stand-By Credit Facility (SCF) Loan Account of the PRGT, for up to SDR 150 million (about US$203 million) each.

This agreement, made effective on November 17, 2016, is the fourth PRGT borrowing agreement with Norway and among the first three PRGT loan contributions to take effect under the current fund-raising campaign (see Press Releases No. 16/534 and 16/536). Following the Executive Board’s endorsement, the Managing Director launched this campaign in November 2015 with a target of SDR 11 billion in new bilateral loan resources. (see Update on the Financing of the Fund’s Concessional Assistance and Debt Relief to Low-Income Member Countries ).

Norway’s continued support to the PRGT in loan resources for the IMF’s low-income member countries is a critical element towards sustaining the Fund’s concessional lending operations over the medium-term.