The Ministry of Finance announced that the UAE has signed two agreements with the International Monetary Fund (IMF).
According to those agreements, the UAE contributes to the finance of both:
Poverty Reduction and Growth Trust (PRGT) and the Resilience and Sustainability Trust (RST).
These agreements were signed on the sidelines of the annual meetings of the World Bank Group and the International Monetary Fund in Washington, D.C.
The UAE Allocates $200 million to End Poverty
In October 2023, during the meeting of the International Monetary and Financial Committee, the UAE announced its initiative to contribute to the financing of the PRGT.
The UAE allocated $200 million (735 million AED) as part of its efforts to expand concessional lending to low-income countries.
This is in line with its continuous pursuit of achieving the first UN Sustainable Development Goal “ending poverty”.
This initiative also aims to address other global challenges.
As they require collective action for a better and more sustainable future for all.
During COP28 conference, held from November 30 to December 12, 2023, the UAE announced a contribution of $200 million (735 million AED) to the RST.
This contribution aims to enhance climate resilience to the impacts of climate change in the most vulnerable and low-income countries.
What are PRGT and RST ?
It is noteworthy that the PRGT was established in January 2010.
It aims to address the challenges faced by low-income countries.
In addition, it serves as a key tool of the IMF to provide concessional financing to these nations.
The PRGT supports countries struggling with:
- High inflation rates
- Persistent food insecurity
- Rising debt risks
- Increased borrowing costs
The President of the State offers his condolences to the Turkish President over the victims of the terrorist bombing, and affirms the UAE’s solidarity with #Turkey and its rejection of all forms of violence and terrorism that aim to destabilize security and stability and are… pic.twitter.com/2wB8HEhyxh
— UAE Voice (@uae_voiceeng) October 25, 2024
PRGT is Financing 69 Countries
The IMF has responded to these challenges by increasing zero-interest lending through the PRGT.
This is to assist its poorest and most vulnerable member countries to cope with difficult economic environments.
A total of 69 countries are eligible for PRGT financing.
The IMF’s Resilience and Sustainability Trust (RST) also offers concessional financing with long-term repayment periods.
Moreover, it aims to boost climate resilience and pandemic preparedness, particularly for middle- and low-income economies.
As well as countries most exposed to the impacts of climate change.
