The International Monetary Fund (IMF) says it is proposing a $50 billion trust fund to help low and vulnerable middle-income countries build resilience and sustainability.
The Washington-based institution said this on Thursday in a new blog post.According to IMF, the fund will help build resilience to balance of payments shocks and ensure a sustainable recovery.
The fund is part of IMF’s $650 billion special drawing rights (SDRs) issued in August 2021 to vulnerable countries boost liquidity through Resilience and Sustainability Trust (RST).
“Even as countries continue to battle COVID-19, it is crucial not to overlook the longer-term challenge of transforming economies to become more resilient to shocks and achieve sustainable and inclusive growth,” the blog post reads.
“The pandemic has taught us that not addressing these long-term challenges in a timely manner can have significant economic consequences, with the potential for the future balance of payments problems.
“Climate change is another long-term challenge that threatens macroeconomic stability and growth in many countries through natural disasters and disruptions to industries, job markets, and trade flows, among others.