Germany Contributes an Additional 80 Million Euros to Support Impoverished Nations via IMF

14 Oct, 2023

Germany Contributes an Additional 80 Million Euros to Support Impoverished Nations via IMF

Germany has committed to increasing its support for impoverished nations by injecting an additional 80 million euros (approximately $84.27 million) into the International Monetary Fund's (IMF) low-income trust. This announcement came from Germany's Finance Minister, Christian Lindner, during the IMF's meeting in Marrakesh on Friday.

The IMF has been actively calling on its member countries to help close a funding gap of $1.2 billion within the $3 billion subsidy account designated for assisting economically disadvantaged nations. Notably, Japan had already made a substantial commitment earlier in the week, earning praise from IMF Managing Director Kristalina Georgieva for its remarkable pledge.

The IMF anticipates that further contributions to the Poverty Reduction and Growth Trust (PRGT) will be announced. The PRGT, established in 2021 to mitigate the economic impact of the COVID-19 pandemic, has been instrumental in providing support to over 50 countries, including nations like Haiti and Nepal. It has disbursed loans valued at approximately $29 billion, enabling these countries to access crucial funding, particularly in the form of zero-interest rate loans.

Germany's decision to bolster the IMF's fund demonstrates its commitment to global efforts aimed at alleviating the financial challenges faced by low-income countries and fostering sustainable economic growth. This pledge contributes significantly to the ongoing collective endeavor to address economic disparities and promote the well-being of nations grappling with poverty.