7 Jan 2008

IMF urges Marshalls trust fund top-up

4:15 pm on 7 January 2008

An International Monetary Fund official says the Marshall Islands face a huge drop in income without more money going into the trust fund.

Current grants from the United States end in 2023 and it's predicted income from the trust fund won't provide the same amount of money for the nation.

A return on investments at six percent will make available only 24.4 million US dollars for use by the government in 2024.

That would be a shortfall of 22.5 million over the 47 million level of US grants in the final year of the Compact of Free Association.

The IMF evaluation follows a similar report from the U.S. Government Accountability Office last year that said the US and Taiwan-funded trust fund will not produce enough interest to replace US aid.

But US State Department officials have said there is no requirement that the trust fund replace the nearly 50 million in aid the US will provide in 2023.