Proposal for a Post Catastrophe Debt Relief Trust Fund—Proposed Decisions; IMF Policy Paper; June 23, 2010

The International Monetary Fund proposed the establishment of the Post-Catastrophe Debt Relief (PCDR) Trust Fund to provide targeted debt relief to low-income countries severely affected by catastrophic natural disasters. The PCDR Trust offers both temporary (debt flow) and, in certain cases, permanent (debt stock) relief on eligible IMF debt, with eligibility and relief amounts determined by the scale of disaster impact and updated debt sustainability analyses. This initiative is designed to supplement existing IMF support mechanisms, ensuring that scarce grant resources are directed to the poorest and most vulnerable countries to aid in their economic recovery.

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