Are you interested in knowing the reason why the International Monetary Fund (IMF) has increased the limits on members access to the fund’s resources in the General Resources Account (GRA).
Then make sure you read this article to the end.
You see, so many countries are gasping for breath, trying to swim out of the submerge their economy witnessed during the COVID-19 pandemic.
Not many of them could wriggle out just like that.
In fact, it is taking some countries two years already and they are still in the battle to swim out.
At a meeting of the Executive Board of the IMF, it was concluded that access to the fund’s resources in the General Resources Account (GRA), be temporarily increased to better support members.
The information was published in a statement found on the IMF website on Tuesday.
This simply means that IMF as an organisation is looking out for the best interest of its members.
The changes are intended to better support members in a particularly challenging and uncertain economic environment.
To help members contain the impact of the COVID-19 pandemic, the IMF adjusted the yearly limit temporarily to 245% of quota.
“Today’s decision raises the annual limit in the GRA to 200% of quota and the cumulative limit to 600% of quota for 12 months.
“These changes will provide member countries, particularly emerging markets and developing economies that face increased financing pressures and vulnerabilities, to access higher fund financial support without triggering the exceptional access framework.
“If circumstances warrant, staff would re-engage the executive board before the end of the 12-month period on a proposal to maintain for longer the higher GRA access limits,” it added.
