International Monetary Fund officials outlined plans for a proposed $50 billion lending trust focused on climate change and sustainability, providing the greatest detail so far on a key initiative that the institution aims to put in place this year.
About three quarters of IMF nations would be eligible for money from the Resilience and Sustainability Trust, or RST, according to a Thursday blog post by Ceyla Pazarbasioglu and Uma Ramakrishnan, the director and deputy director of the fund’s strategy, policy and review department. That includes all low-income and developing countries, as well as middle-income nations with gross national per-capita income of less than about $12,000 per year.
The trust aims to address longer-term challenges to economic stability, including climate change, pandemic preparedness and digitalization, the IMF said. The fund would determine access on a case-by-case basis and that access would depend on countries’ debt sustainability and commitment to making structural changes. Nations also would need to be already participating in a traditional IMF program, making the trust a supplement rather than a substitute.