May 24, 2023/IMF
Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), issued the following statement:
“I welcome the very important pledge, announced by Qatar today, of 20% of its Special Drawing Rights (SDR) holdings toward the IMF’s Poverty Reduction and Growth Trust (PRGT) and Resilience and Sustainability Trust (RST). Two of the greatest challenges the world faces are how to generate the growth necessary to reduce poverty, and how to mitigate the impact of climate change. With this announcement today, Qatar is showing leadership on both issues, and I am deeply grateful for this generous pledge.
“The contribution to the PRGT will allow the IMF to continue to provide zero-interest loans to the world’s poorest countries in these difficult times. This financing will help countries put in place the policies needed to stimulate growth and reduce poverty, catalyze financing from donors and the private sector, and unlock debt treatment where needed.
“The contribution to the RST helps vulnerable countries with affordable financing to address longer-term challenges, including climate change mitigation and pandemic-preparedness.
“Qatar’s generosity and leadership are sending a strong signal of the value of solidarity with those most in need. I call on other countries that can afford to do so to show commitment to our vulnerable countries—in the Middle East and North Africa (MENA) and Africa in particular—to help them address growing challenges.
“Demand for the PRGT is at record levels. The IMF has responded to this rising demand and rapidly scaled up support. We increased our interest-free financing more than four-fold to $24 billion since the beginning of the pandemic.
“But we know that additional strong demand for PRGT financing and sharply higher interest rates will further increase the resource needs. To keep delivering the vital support our poorest members need, we are urgently calling on those members who have more means and capacity to help address funding shortfalls in our PRGT, especially the subsidy resources where we still have a gap of $1.2 billion.
“The upcoming IMF and World Bank Annual Meetings in Marrakech in October will be the first meetings in 20 years in the Middle East, and the first in 50 years in Africa. This is an historic opportunity for Qatar and the entire region to highlight its global leadership through solidarity with our most vulnerable low-income members by supporting our efforts to close the remaining funding gap.”
Qatar announced its pledge on Wednesday, during an event in Doha addressed by H.E. Mr. Ali bin Ahmed Al Kuwari, Minister of Finance, and IMF Managing Director, Kristalina Georgieva. Also on Wednesday, Ms. Georgieva attended the Qatar Economic Forum and had talks with H.H. Tamim bin Hamad Al Thani, Amir of Qatar, H.H. Sheikha Moza bint Nasser, chairperson of the Qatar Foundation, and H.E. Sheikh Bandar bin Mohammed bin Saoud Al Thani, the Central Bank Governor and Chairman of the Board of Qatar Investment Authority. In these bilateral meetings Ms. Georgieva highlighted the value the IMF places in its partnership with Qatar and the role of the country and the region as global leaders, helping the world address pressing challenges.