IMF urges members to replenish funds for low-income, vulnerable states
SPY•IMF chief Kristalina Georgieva urged member states to honor funding pledges to two funds for low-income and vulnerable countries. Debt service costs for developing countries rose to 14% of revenue from 6% a decade ago.
1. Funding requests
Georgieva said the IMF was asking members to increase funding for its Poverty Reduction and Growth Trust, which provides low- and zero-interest loans to low-income countries, and replenish the Catastrophe Containment and Relief Trust, which provides grants for debt-service relief and cancellation to the poorest and most vulnerable members.
2. Rising debt costs
Georgieva said average debt service costs for developing countries had risen to 14% of revenue from 6% a decade ago, even as overall debt burdens eased. Gambian Finance and Economic Affairs Minister Seedy Keita said the burden limited investment in infrastructure and human capital.
3. Growth outlook
The IMF forecast global growth of 3.1% for 2026 and said nearly all developing economies were expected to grow more slowly that year. Georgieva said the IMF had restructured the PRGT to triple lending to low-income countries, while calling on members to honor funding commitments.
