Belgium makes supplementary contribution to the IMF Fund for the Least Developed Countries
Belgium will make supplementary contributions to the Poverty Reduction and Growth Trust, an IMF Fund financing growth in the Least Developed Countries (LDCs). This was decided by the federal government today on the proposition of Finance Minister Johan Van Overtveldt and Minister of Development Cooperation Alexander De Croo. This contribution reflects the priority that Belgium gives to the Least Developed Countries and to the implementation of the 2030 Agenda for Sustainable Development. A state guarantee was also approved by the National Bank of Belgium for a credit line for the IMF of maximum 9.99 billion euros, for the IMF to better fulfill its role as a crisis fighter.
The federal government decided to grant a state guarantee for the opening of a credit line by the National Bank of Belgium for the Loan Account of the Poverty Reduction and Growth Trust (PRGT) of the International Monetary Fund (IMF) for a maximum amount of 350 Special Drawing Rights (SDR). In 1999, 2001 and 2012, Belgium already committed to three credit lines for a total amount of 700 million SDR.
Focus on the Least Developed Countries
The contribution is part of the Belgian efforts towards the Least Developed Countries (LDCs). Belgium has decided to dedicate 50% of its official aid to the development of the LDCs. 11 of the 14 official partner countries for the Belgian Development Cooperation are LDCs. Within the United Nations, Belgium is also presiding the group of friends of LDCs. With this support to the IMF fund, Belgium is helping as well in implementing the Sustainable Development Agenda aiming to eradicate poverty by 2030.
“With this contribution, Belgium confirms its support for the Least Developed Countries. These countries very often encounter difficulties in getting funding for their economic development. The Poverty Reduction and Growth Trust can partly compensate this funding gap. If we want to help these countries in developing their economy, it’s of utmost importance that we invest in dynamic economic growth, which is precisely the role of this fund.” according to Alexander De Croo.
Finance Minister Johan Van Overtveldt: “This government is committed to a targeted development aid and supports the countries that are the most in need of poverty reduction and economic growth through contributing to the Poverty Reduction and Growth Trust. In addition, a bilateral credit will be granted to the IMF, by which it will be able to continue its role as a safety net for global financial crises.”
Temporary reinforcement of IMF resources
The federal government also decided to provide a 9.99 billion euros state guarantee to the International Monetary Fund (IMF) for the opening of a bilateral credit line by the National Bank of Belgium. With this bilateral loan, Belgium pays a substantial contribution to the temporary reinforcement of the IMF's resources. Thanks to the resources that the international community will make available to the IMF, the Fund will have adequate financial capacity to fulfill its role as a crisis fighter.