fbpx mmnews

IMF approves aid for world’s 28 poorest countries

NEW YORK: The International Monetary Fund has approved new emergency aid for 28 of the world’s poorest countries to help them alleviate their debt and cope with the impact of the coronavirus pandemic.

The announcement, which follows a similar measure passed in mid-April for 25 countries, is intended to help the countries cover their debt repayments to the IMF for the next six months and “free up scarce financial resources for vital emergency medical and other relief efforts” during the pandemic.

The 28 countries receiving the second tranche of aid are Afghanistan, Benin, Burkina Faso, Burundi, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mozambique, Nepal, Niger, Rwanda, Sao Tome and Principe, Sierra Leone, the Solomon Islands, Tajikistan, Tanzania, Togo and Yemen.

The IMF said Mali is also eligible for aid but has not yet been added to the list because there is a lack of clarity as to whether the international community recognizes the current military regime.

“I am proud that the IMF has extended debt service relief for 28 of the poorest countries until April 2021. This will help them continue to support their economies and people through this crisis,” IMF Managing Director Kristalina Georgieva.

READ MORE: Coronavirus may narrow current global imbalances: IMF

Georgieva launched an urgent fundraising effort that would enable the CCRT to provide debt relief for up to a maximum of two years while leaving the CCRT adequately funded for future needs.

The debt relief is channeled through the Catastrophe Containment and Relief Trust (CCRT), which enables the IMF to provide grants to the poorest and most vulnerable countries hit by a natural disaster or public health crisis.

The grants could be provided for a two-year period subject to sufficient resources through mid-April 2022 for an estimated total amount of $959 million. The IMF’s goal is to endow the CCRT with $1.4 billion to meet future needs.

Around $506.5 million has been contributed by several countries, including the United Kingdom, Japan, Germany, the Netherlands, Switzerland, Norway, China, Mexico, Sweden, Bulgaria, Luxembourg and Malta.

Comments: 0

Your email address will not be published. Required fields are marked with *