International Monetary Fund (IMF) Managing Director Christine Lagarde today welcomed steps taken by member countries to authorize the use of profits from IMF gold sales to support concessional lending to low-income countries, and called on more members to join the global effort to support the world's poorest countries. Under a plan initially launched in 2009 aimed at raising concessional lending capacity to US$17 billion over the period 2009-2014,  the Fund has decided to distribute to the membership some SDR 700 million (about US$1.1 billion) in reserves attributed to a part of the profits from its 2009-2010 gold sales program. However, the distribution will be effected only when members provide satisfactory assurances that they will make new concessional lending subsidy contributions equivalent to at least 90 percent of the amount distributed—i.e. SDR 630 million (about US$978 million—see Press Release No. 12/56 ).

As of April 30, 2012, some 69 countries representing 48.67 percent of the proposed distribution had pledged to use their portion of the distribution to subsidize lending to low-income countries, which may currently borrow at zero or low interest from the Poverty Reduction and Growth Trust (PRGT), the IMF's concessional lending vehicle. Details are published in the latest Update on the Financing of the Fund's Concessional Assistance and Debt Relief to Low-Income Member Countries and an updated list of countries making pledges is available online here .

"Many of our low-income members have weathered recent crises much better than in the past, thanks to their impressive efforts in strengthening economies and fighting poverty," Ms. Lagarde stated. "Yet at a time when their resilience and hard-won gains might be tested again by global volatility, increased low-interest lending will be crucial to helping many of them absorb further shocks and continue their efforts to achieve deeper and more sustainable economic growth," she added.

"I wish to thank all those donor countries that have stepped up so quickly, and call on the rest of our members to join in this global effort rapidly so we can complete this operation and ensure adequate support for low-income countries," Ms. Lagarde stated. IMF, 2/05/12.