The Executive Board of the International Monetary Fund (IMF) on Wednesday gave the green light for a $45 billion fund called the Resilience and Sustainability Trust (RST).
“This historic decision embodies the spirit of multilateralism.
It shows that when the need and the will are there, we can work together to achieve a meaningful outcome for the benefit of all," IMF Managing Director Kristalina Georgieva told Reuters.
In the future, the fund is intended to help low- and middle-income countries to cope with major challenges such as climate change and pandemics.
This came from an IMF paper that Reuters was able to see earlier.
Last October, the 20 leading industrialized and emerging countries (G20) spoke out in favor of creating such an instrument.
Almost three quarters of the 190 IMF members would then be entitled to apply for funds from the pot.
It would not only be poorer countries, but also many emerging countries.
So far, the IMF has offered low-interest or zero-interest financing primarily for short and medium-term problems.
There are also special programs for particularly poor developing countries.
However, there was a gap in long-term financing that is now to be closed.
According to earlier information, the RST should be tapped from October.
In order to get funds from it, however, countries must commit to certain reforms and demonstrate a sustainable debt burden.