Additional Reference Materials

Suggested by the Joint Library

International Monetary Fund. 2018.  Modifying the Poverty Reduction and Growth Trust (PRGT) Cumulative Borrowing Limit.” Policy Papers, International Monetary Fund, Washington.

Author abstract

An effort to mobilize SDR 11 billion in additional Poverty Reduction and Growth Trust (PRGT) loan resources is underway to sustain the Fund’s concessional lending operations over the medium term. SDR 9.4 billion in new loan resources have been secured to date and negotiations with remaining potential loan providers indicate that the target is likely to be exceeded by about SDR ½ to 1 billion. To accommodate the better-than-expected loan mobilization outcome, the PRGT’s cumulative borrowing limit of SDR 37 billion would need to be increased. PRGT creditors were consulted and supportive of a proposed increase in the borrowing limit, from SDR 37 billion to SDR 38 billion.


International Monetary Fund. 2018. Update on the Financing of the Fund's Concessional Assistance and Debt Relief to Low-Income Countries.” Policy Papers, International Monetary Fund, Washington.

Author abstract

The Fund is adapting its framework for providing support to low-income countries (LICs) amid rising vulnerabilities. Despite a global economic upswing, many LICs continue to face difficult fiscal and external positions, aggravated by increasing debt levels and natural disasters in many countries. In this context, the Executive Board approved in May 2017 higher annual access limits under the Rapid Credit Facility (RCF) for balance of payment needs arising from large natural disasters and in May 2017 decided to keep the list of Poverty Reduction and Growth Trust (PRGT)-eligible countries unchanged notwithstanding rising per capita income levels. A comprehensive review of PRGT facilities is underway to consider potential adaptations of program modalities and access policies.


International Monetary Fund. 2017. “Eligibility to Use the Fund's Facilities for Concessional Financing for 2017.”  Policy Papers, International Monetary Fund, Washington.

Author abstract

The review of PRGT-eligibility, conducted biennially, is guided by a transparent, rules-based, and parsimonious framework. The framework determines which IMF members can access concessional resources based on an assessment of their level of income per capita, market access, and serious short-term vulnerabilities. This paper concludes that the existing framework remains generally appropriate. 


International Monetary Fund. 2017. Social Safeguards and Program Design in PRGT and PSI-Supported Programs.” Policy Papers, International Monetary Fund, Washington.

Author abstract

This paper examines how PRGT-supported programs safeguard spending on poor and vulnerable groups within the broader framework of promoting inclusive growth. 


International Monetary Fund. 2017. 2017 Handbook of IMF Facilities for Low-Income Countries.” Policy Papers, International Monetary Fund, Washington.

Author abstract

This Handbook provides guidance to staff on the financial facilities and non-financial instruments for low-income countries (LICs), defined here as all countries eligible to obtain concessional financing from the Fund.


International Monetary Fund. 2014. Do IMF-Supported Programs Catalyze Donor Assistance to Low-Income Countries?” Working Paper No. 14/202, International Monetary Fund, Washington.

Author abstract

This study explores whether IMF-supported programs in low-income countries (LICs) catalyze Official Development Assistance (ODA). Based on a comprehensive set of ODA measures and using Propensity Score Matching approach to address selection bias, we show that programs addressing policy or exogenous shocks have a significant catalytic impact on both the size and the modality of ODA. Moreover, the impact is greatest when LICs are faced with substantial macroeconomic imbalances or large shocks. Nevertheless, when countries attracting similar donor assistance before shocks are matched results for bilateral ODA turn insignificant, suggesting that the catalytic impact is attributed primarily to multilateral ODA.

International Monetary Fund. 2013. “The Economic Impact of IMF-Supported Programs in Low-Income Countries.” Occasional Paper No. 277, International Monetary Fund, Washington.

Author abstract

This paper aims to assess the economic impact of the IMF’s support through its facilities for low-income countries. It relies on two complementary econometric analyses: the first investigates the longer-term impact of IMF engagement—primarily through successive medium-term programs under the Extended Credit Facility and its predecessors (and more recently the Policy Support Instrument)—on economic growth and a range of other indicators and socioeconomic outcomes; the second focuses on the role of IMF shock-related financing—through augmentations of Extended Credit Facility arrangements and short-term and emergency financing instruments—on short-term macroeconomic performance.


International Monetary Fund. 2013.IMF-Supported Programs in Low Income Countries : Economic Impact over the Short and Longer Term.” Working Paper No. 13/273, International Monetary Fund, Washington.

Author abstract

This paper studies the short and longer-term impact of IMF engagement in Low-Income Countries (LICs) over nearly three decades. In contrast to earlier studies, we focus on a sample composed exclusively of LICs and disentangle the different effects of IMF longer-term engagement and short-term financing using a propensity score matching approach to control for selection bias. Our results indicate that longer-term IMF support (at least five years of program engagement per decade) helped LICs sustain economic growth and boost resilience by building fiscal buffers. Interestingly, the size of IMF financing has no significant impact on economic growth, possibly pointing to the prominent role of IMF policy advice and institutional capacity building in the context of longer-term engagement. We also present evidence that the short-term IMF engagement through augmentations of existing programs or short-term and emergency facilities is positively associated with a wide range of macroeconomic outcomes. Notably, the IMF financial support has the greatest impact on short-term growth when LICs are faced with substantial macroeconomic imbalances or exogenous shocks.


James M. Boughton and Domenico Lombardi. 2009.Finance, Development, and the IMF.” Oxford: Oxford University Press.

This book provides an assessment of the role of the International Monetary Fund in poor countries. In recent years, a large portion of the work of the IMF has focused on the economies of low-income countries by aiming to create conditions conducive to poverty reduction and stable economic growth. More than two fifths of the IMF's 185 members are low-income countries and many others have substantial pockets of poverty in their populations. Since economic development and the reduction of poverty are the most important economic challenges that these countries face, how can the IMF best help them? How can the imperative of macroeconomic and financial stability be reconciled with the requirements for sustained economic growth? This book brings together the research of leading economists, political scientists, and historians to suggest ways for the IMF to address these issues effectively.