WASHINGTON: The Managing Director of International Monetary Fund (IMF) has announced that the board has decided to provide immediate debt relief to 25 poor countries amid coronavirus outbreak.
The relief will enable the countries free up funds to fight 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,” IMF MD Kristalina Georgieva said in a statement today.
The countries who will get the relaxation in debt include Afghanistan, Yemen, Nepal, Haiti and nearly all countries in Africa.
According to Georgieva, no country would be asked to pay debt amount from May 1 through June as they already struggle to fight the COVID-19 pandemic.
The IMF, together with the World Bank, has asked rich nations to stop collecting debt payments from poor countries during this period,” she said, adding that the debt relief will be funded by the IMF’s Catastrophe Containment and Relief Trust (CCRT).
The managing director of the IMF further added that the fund currently has $500 million, contributed by the Netherlands, the United Kingdom, People’s Republic of China and Japan.
“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,” Georgieva said.
On the other hand, the International Monetary Fund will also take a final decision about approval of debt relief for Pakistan on Thursday, April 16.
Earlier: IMF willing to support Pakistan in its war against Coronavirus
IMF had earlier shown willingness to help Pakistan that is suffering economically while attempting to contain the menace of Coronavirus.
According to details, the IMF had stated that it would consider Pakistan’s request for financial assistance under its Rapid Financing Instrument (RFI) facility to augment the country’s foreign exchange reserves and budgetary support enabling the Pakistan government absorb the shock due to the ongoing Coronavirus pandemic.
IMF Managing Director Kristalina Georgieva has stated: “Our team is working expeditiously to respond to this request so that a proposal can be considered by the IMF’s executive board as soon as possible.”
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