IMF Urges Members To Fund Support For Vulnerable Countries

Bangkok, October 14

International Monetary Fund Managing Director Kristalina Georgieva has urged member countries to fulfil their financial commitments to support low-income and vulnerable nations, warning that economic pressures and falling development assistance risk widening global inequality.

Calls For Fund Replenishment

Georgieva asked members to increase funding for the Poverty Reduction and Growth Trust, which provides low- and zero-interest loans to low-income countries. She also called for replenishment of the Catastrophe Containment and Relief Trust, which can provide grants for debt-service relief and cancellation for the poorest and most vulnerable members.

Debt Burden Grows

Developing countries are facing higher debt-servicing costs at a time when access to development assistance has weakened. The IMF said debt-service costs for developing economies have risen substantially over the past decade, limiting the money governments can spend on health, education, infrastructure and climate resilience.

Also Read: IMF Projects Pakistan Growth At 3.5pc, Inflation Near 10pc

Uneven Global Outlook

The Fund expects global economic growth of 3.1 per cent in 2026, with slower growth projected for nearly all developing economies. Higher benchmark yields in advanced economies can also spill over into emerging markets, increasing borrowing costs and putting pressure on public finances.

Support And Reform

Georgieva said international financial support remains important as countries navigate economic shocks and technological changes, including the rapid development of artificial intelligence. Replenishing the funds would help the IMF provide affordable financing and relief when vulnerable states face severe crises. The appeal places pressure on wealthier member governments to turn existing pledges into actual contributions.