International Financial Management: An Analytical Framework, 2nd Edition by Pearson

524 INTERNATIONAL FINANCIAL MANAGEMENT

The IMF gives special treatment to poor countries. It provides financial support to low-

income countries through its concessional lending facilities—the Poverty Reduction and

Growth Facility and the Exogenous Shocks Facility. The interest rate levied on these types of

loans is only 0.5 percent, and they are to be repaid over a period of 5 to 10 years. Financial

support is also provided to low-income countries through debt relief under the Heavily

Indebted Poor Countries Initiative and the Multilateral Debt Relief Initiative. In collabora-

tion with the World Bank, the IMF has been working to reduce to sustainable levels the debt

burdens of heavily indebted poor countries. The IMF also helps low-income ...