Germany pledges 3 billion euros for low-income countries

by Abdulmumeen S. Yitta

At a G20 meeting of finance ministers, German Finance Ministry disclosed that the country would provide monetary assistance worth 3 billion euros ($3.4 billion) to the low-income countries in the world.

While disclosing this on 18th Saturday July 2020, the ministry said the fund would be in form of long-term loans which beneficiaries would receive as part of Poverty Reduction and Growth Trust (PRGT), an International Monetary Fund sponsored program intended to promote growth and reduce poverty in Low-income countries (LICs)

Stating the purpose of the fund, the German Finance Ministry in a statement said, “With the funds … low-income countries can receive greatly discounted loans and bridge liquidity bottlenecks.”

The ministry further disclosed that in 2020 and 2021, German government would provide international aid measures worth 8.7 billion euros.

According to the IMF officers, the PRGT program had in April received pledges from countries such as Australia, Japan, Canada, and France, whose combined monetary inputs have totaled $11.7 billion to help strengthen the financial capacity of the program.

It was though stated that the United States has yet to pledge any money to the PRGT.

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