Dubai, UAE – Qatar has signed two agreements with the International Monetary Fund (IMF) on its contributions towards IMF’s poverty reduction and sustainable initiatives.
The agreements were signed on the sidelines of the Annual Meetings of the Boards of Governors of the World Bank Group (WBG) and the IMF in Morocco.
The agreements, “Qatar’s Special Drawing Rights (SDRs) Commitment to the IMF”, pave the way for future cooperation in formulating proposals and contributions between the two parties, through the Poverty Reduction and Growth Trust (PRGT) fund agreement, Qatar News Agency reported.
Under the PRGT, states grant soft loans, with Qatar’s contribution being a loan from the special drawing rights account, which will be considered a soft loan (an implicit contribution to the aid).
Under the Resilience and Sustainability Trust (RST) fund agreement, contributions will be in the form of subscription packages consisting of loans, deposits and reserves in fixed proportions, QNA reported.
Qatar’s Minister of Finance Ali bin Ahmed Al Kuwari said the agreements are part of Qatar’s ongoing initiatives in its commitment to strengthening multilateral action in order to confront the challenges facing the global economy with the aim of contributing to the development of financial sustainability, supporting countries to overcome crises and reducing poverty.
The agreements follow the official announcement issued during the third edition of the Qatar Economic Forum in May. The global economy faces a number of challenges, including high inflation, increasing debt vulnerabilities, rising poverty and inequality, slow growth and tighter financial conditions. Addressing these challenges requires additional resources, stemming notably from the rising south-to-south economy and the new growth opportunities it offers to the global business community, QNA said.
Qatar recognizes these growing needs and has continued to deliver on its commitment to strengthen multilateral action to address the current challenges with the aim to contribute to the new global growth story.