{"id":28353,"date":"2024-09-12T10:23:50","date_gmt":"2024-09-12T14:23:50","guid":{"rendered":"https:\/\/www.bu.edu\/gdp\/?p=28353"},"modified":"2024-09-12T10:25:03","modified_gmt":"2024-09-12T14:25:03","slug":"mobilizing-innovative-sources-of-finance-lessons-from-the-resilience-and-sustainability-trust-rst","status":"publish","type":"post","link":"https:\/\/www.bu.edu\/gdp\/2024\/09\/12\/mobilizing-innovative-sources-of-finance-lessons-from-the-resilience-and-sustainability-trust-rst\/","title":{"rendered":"Mobilizing Innovative Sources of Finance: Lessons from the Resilience and Sustainability Trust"},"content":{"rendered":"
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Gisenyi, Rwanda. Photo by Ifeoluwa A. via Unsplash<\/figcaption><\/figure>\n

In April 2022, the International Monetary Fund (IMF) established the Resilience and Sustainability Trust (RST), its first lending facility to provide longer-term concessional financing to low- and middle-income countries to help tackle key structural challenges such as climate change and pandemic preparedness.\u00a0<\/span><\/p>\n

The RST is resourced through voluntary re-channeling by Group of 20 (G20) countries as part of their 2021 historic allocation of Special Drawing Rights (SDRs), the Fund\u2019s reserve asset. Costa Rica, Barbados, Rwanda, Bangladesh and Jamaica were the first five countries to access the Resilience and Sustainability Facility (RSF), the instrument under which RST loans are made. RSF programs have been in demand, with the number of RSF programs reaching 18 by the end of March 2024.\u00a0<\/span><\/p>\n

In a <\/span>new Think20 (T20) policy brief<\/i><\/b><\/a>, Jwala Rambarran<\/a>, Sara Jane Ahmed<\/a>, Fahmida Khatun<\/a> and Rishikesh Ram Bhandary<\/a> present three actionable recommendations to the G20 to help make the RST an important, transformational part of the global financial architecture, particularly as the IMF undertakes a comprehensive review of the lending tool in 2026.\u00a0<\/span><\/p>\n

Policy Recommendations:\u00a0<\/b><\/h5>\n