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Japan Boosts its Contributions to IMF’s Catastrophe Relief Fund and Poverty Reduction and Growth Trust

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Via IMF (Den Internationale Valutafond)

Japan Boosts its Contributions to IMF’s Catastrophe Relief Fund and Poverty Reduction and Growth Trust

April 30, 2020

Washington, DC –
Japan has recently announced a package of measures to respond to the
economic challenges of coronavirus. While it has the clear intention to
support the Japanese economy, Japan will also underpin the stability of the
global economy through contributions to the International Monetary Fund’s
resources for the provision of debt relief and concessional financing to
low-income countries.

“I welcome the sizable economic and fiscal measures—totaling about one
fifth of GDP—announced in the Japanese government’s April statement of
Emergency Economic Measures for New Coronavirus Infections to address the
economic impact of the coronavirus epidemic. These actions will help to
alleviate the health challenges and support households and businesses to
bridge through the economic challenges facing Japan,” said IMF Managing
Director, Kristalina Georgieva.

Japan is the largest contributor to IMF financial resources, and
largest contributor to the Fund’s concessional lending facilities.
Japan is the largest PRGT lender and grant contributor among all IMF
member countries. To date, it has provided close to SDR 9 billion
(representing 23 percent of all PRGT loans) and over SDR 0.9 billion in
subsidy grant resources (representing close to 15 percent of donors’
total contributions).

In April, Japan provided an additional US$100 million contribution to the
IMF’s Catastrophe Containment and Relief Trust as immediately available
resources to support the Fund’s capacity to provide grant-based debt
service relief for the poorest and most vulnerable countries to combat
COVID-19. In order to provide emergency financing for broader emerging
markets and developing countries to meet their prospective imminent needs,
on April 16, Japan announced that it is aiming at doubling its contribution
to the Poverty Reduction and Growth Trust from the current SDR 3.6 billion.
Japan will make available the first SDR 1.8 billion immediately. Japan
calls on other member countries to follow quickly, and Japan will match an
additional SDR 1.8 billion with their contributions.

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The Managing Director praised Japan’s global leadership and support for the
CCRT and PRGT. “These contributions represent a most welcome response to
the International Monetary and Finance Committee’s call on the membership
to provide the necessary support to mitigate the impact of the coronavirus
crisis, especially for the poorest and most vulnerable countries. I urge
other member countries to contribute to both the CCRT and PRGT. By working
together, we can overcome the global challenge facing us and help restore
growth and prosperity.”

The CCRT allows the International Monetary Fund to support
international debt relief efforts when poor countries are hit by
natural disasters and to assist poor countries battling public health
crises—such as epidemics like the coronavirus—with grants for debt
service relief.

The PRGT allows the International Monetary Fund to provide concessional
financial support to low-income countries, to help them achieve, maintain,
or restore a stable and sustainable macroeconomic position consistent with
strong and durable poverty reduction and growth. Low-income countries are
particularly hard hit because they lack the resources and infrastructure to
respond to the unprecedented health and economic challenges from this
pandemic. It is therefore crucial that the membership work together to
support our poorest and most vulnerable members in this difficult period.

Multilateral financial institutions such as the International Monetary Fund
and the World Bank have committed resources to assist member countries,
with a focus on low income developing countries where health systems are
the weakest and people are most vulnerable. The Fund is continuing to work
with donors to increase the resources available in both the PRGT and CCRT,
to provide concessional financing and extend the duration of debt relief to
our poorest and most vulnerable member countries.

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IMF Communications Department

PRESS OFFICER: Keiko Utsunomiya

Phone: +1 202 623-7100Email:


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