IMF leader, Kristalina Georgieva, said that the goal of raising $100 billion for climate and poverty funds has been achieved. She made this announcement during a climate financing summit in Paris while speaking to reporters.
The IMF still required an additional $40 billion before the conference in order to meet the goal.
The plan, initially introduced in 2019, aimed for wealthier nations to repurpose $100 billion in IMF special drawing rights (SDRs) to support vulnerable economies.
SDRs are assets consisting of foreign currencies that countries receive from the IMF based on their contributions.
The concept involved wealthier countries lending these foreign currency assets to the IMF, which would then lend them to developing nations. Some European nations were unwilling to endorse this concept, though.
Prior to the summit, France and Japan revealed that they would allocate 30 percent of their SDRs for this specific purpose.
