The International Monetary Fund (IMF) has launched a new trust aimed at helping its less developed members fight the impacts of climate change.
Managing Director Kristalina Georgieva approved the new fund, which will come into effect from the 1st May, with the aim of raising $45 billion (£34.2bn).
She remarked: “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.”
Her announcement also explained that close to three-quarters of the IMF’s country membership will be eligible for funding from this trust and that collaboration with the World Bank and other international financial institutions will be paramount if it is to be a success.
“The trust will provide policy support and affordable longer maturity financing – with a 20-year maturity and a 10-and-a-half-year grace period – to help build resilience against long-term risks to balance of payments stability,” she added.