The International Monetary Fund (IMF) has approved immediate debt relief to 25 countries, with most of them in Africa, but excluding Nigeria.
The countries are: Afghanistan, Benin, Burkina Faso, Central African Republic, Chad, Comoros, Congo, D.R., The Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mali, Mozambique, Nepal, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, Togo, and Yemen.
In a statement by Kristalina Georgieva, the Managing Director of the IMF, the international lender said it would provide $500 million in grant-based debt service relief to these countries s part of the Fund’s response to help address the impact of the COVID-19 pandemic.
She said: “Today, I am pleased to say that our Executive Board approved immediate debt service relief to 25 of the IMF’s member countries under the IMF’s revamped Catastrophe Containment and Relief Trust (CCRT) as part of the Fund’s response to help address the impact of the COVID-19 pandemic.
“This provides grants to our poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months and will help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts.
“The CCRT can currently provide about US$500 million in grant-based debt service relief, including the recent US$185 million pledge by the U.K. and US$100 million provided by Japan as immediately available resources. Others, including China and the Netherlands, are also stepping forward with important contributions. I urge other donors to help us replenish the Trust’s resources and boost further our ability to provide additional debt service relief for a full two years to our poorest member countries.”
For more than two decades ago, the IMF has worked with developing countries to reduce their debt burdens. The purpose of this work is to help them fight against poverty and contribute to the achievement of the Sustainable Development Goals (2015-2030).
