IMF urges members to stock up funds for low-income, vulnerable states
TLT•IMF chief Kristalina Georgieva urged members to honor pledges to the Poverty Reduction and Growth Trust and replenish the Catastrophe Containment and Relief Trust. Developing countries’ average debt service costs rose to 14% of revenue from 6% a decade ago.
1. Funding requests
Georgieva said the IMF recognized its responsibility to help finance countries when needed. The Poverty Reduction and Growth Trust provides low- and zero-interest loans to low-income countries, while the Catastrophe Containment and Relief Trust provides grants for debt-service relief and cancellation to the poorest and most vulnerable member countries.
2. Rising pressure
Georgieva warned that economic developments and the rapid advance of AI threaten to deepen the gulf between advanced and developing economies, especially as development assistance falls. Higher fuel and food costs, reduced aid and subdued appetite for riskier investments are adding pressure; she said average debt service costs in developing countries had risen to 14% of revenue from 6% a decade ago.
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 PRGT had been restructured to triple lending, while members need to honor funding commitments; she also said the CCRT urgently needs replenishment. She was optimistic Senegal would move quickly through debt restructuring after the IMF reached a staff-level agreement on a $2.2 billion lending program.
