IMF urges members to stock up funds for low-income, vulnerable states
SPY•IMF chief Kristalina Georgieva urged member states to honor pledges to its low-income-country lending trust and replenish its catastrophe relief fund. Developing countries’ average debt service costs have risen to 14% of revenue from 6% a decade ago.
1. Calls for fund contributions
Georgieva said the IMF was asking members to make good on pledges to its Poverty Reduction and Growth Trust, which provides low- and zero-interest loans to low-income countries, and to replenish the Catastrophe Containment and Relief Trust, which provides grants for debt-service relief and cancellation.
2. Rising debt pressures
Higher benchmark yields in advanced economies have spilled over to emerging and low-income countries, Georgieva said. Their average debt service costs rose to 14% of revenue from 6% a decade ago, while higher fuel and food costs and declining development assistance added pressure. The IMF forecast global growth of 3.1% in 2026 and said nearly all developing economies were expected to grow more slowly that year.
3. Senegal lending program
Georgieva said she was optimistic Senegal would move quickly through its debt restructuring process. The IMF has reached a staff-level agreement on a $2.2 billion lending program for the country.
