Demand Projections for the Fund's Concessional Resources.

Projections of demand for concessional loans under the Poverty Reduction and Growth Trust (PRGT) are subject to a high degree of uncertainty. The Fund's financial support to low-income countries (LICs) is both cyclical and lumpy. Moreover, there are important structural changes underway that ar...

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Bibliographic Details
Corporate Author: International Monetary Fund
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2011.
Series:Policy Papers; Policy Paper ; No. 2011/019
Subjects:
Online Access:Full text available on IMF
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520 3 |a Projections of demand for concessional loans under the Poverty Reduction and Growth Trust (PRGT) are subject to a high degree of uncertainty. The Fund's financial support to low-income countries (LICs) is both cyclical and lumpy. Moreover, there are important structural changes underway that are likely to affect the frequency, nature, and size of Fund concessional lending. As a result, simple extrapolations from historical lending volumes are misleading. This paper reviews factors underlying historical lending trends and develops a methodology that can narrow down the range of possible longer-term demand scenarios. 
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