The International Monetary Fund (IMF) has approved a $45billion trust fund to help low and vulnerable middle-income countries, including Nigeria to build resilience and sustainability.
This is coming as the Mineral Sector Support for Economic Diversification (MinDiver) of the World Bank has increased the number of aircraft conducting Airborne Geophysical Survey in the South-west from two to four to boost mining activities.
The survey would be conducted in 19 states, including FCT across 121 local government areas.
Nigeria is among lower-middle-income countries with a gross national income (GNI) per capita of $2,157 in 2019, according to the World Bank collection of development indicators.
According to the IMF, the fund will come into effect from May 1, 2022.
The fund is part of IMF’s $650 billion special drawing rights (SDRs) issued in August 2021 to vulnerable countries to boost liquidity through Resilience and Sustainability Trust (RST).
The Managing Director of IMF, Kristalina Georgieva, disclosed this in a statement issued in Washington, DC.
Georgieva said the fund would help build resilience against long-term risks to balance payments’ stability.
“I am very pleased to announce that the IMF’s Executive Board today approved the creation of a new Resilience and Sustainability Trust (RST) to come into effect on May 1, 2022,” the statement reads.
“The Trust aims to help low-income and vulnerable middle-income countries address longer-term structural challenges that pose macroeconomic risks, including climate change and pandemics.
“As the world is confronting consecutive global shocks, we must not lose sight of the critical actions needed today to ensure longer-term resilience and sustainability — and we can only succeed by working together.
“The RST will amplify the impact of the $650 billion SDR allocation implemented last year by channelling resources from economically stronger members to countries where the needs are greatest. The aspiration is to build a Trust of at least $45 billion in resources.
“The RST will serve as a third pillar of the IMF’s lending toolkit, in addition to the General Resources Account and the Poverty Reduction and Growth Trust. The RST will provide policy support and affordable longer maturity financing – with a 20-year maturity and a 10½ -year grace period – to help build resilience against long-term risks to balance of payments stability.”
She added that about three-quarters of IMF’s country members will be eligible for RST financing.
“About three-quarters of the IMF’s country members will be eligible for RST financing, including low-income members as well as most middle-income countries and all small developing states. We have worked extensively with our members and other stakeholders to design the RST, to balance the needs of potential contributors and borrowers,” the statement added.