• Sat. Nov 27th, 2021

IMF grants immediate debt relief to 25 poor countries to fight Covid-19

ByTina R. Wimmer

Mar 11, 2021


“This provides grants to our poorest and most vulnerable members to cover their debt obligations to the IMF during an initial phase over the next six months and will help them channel more of their scarce financial resources into life-saving emergency medical assistance and other relief efforts, ”said the IMF Managing Director. Kristalina Georgieva said in a statement.

The overhaul of the IMF’s Containment and Disaster Relief Trust (CCRT) allows the IMF to provide debt relief grants to eligible low-income countries following catastrophic natural disasters and disasters. rapid spreading major public health emergencies.

The CCRT can currently provide about $ 500 million in grant-based debt service relief, according to Georgieva. “I urge other donors to help us replenish the Trust’s resources and further strengthen our capacity to provide additional debt service relief for two full years to our poorest member countries,” she said. declared.

April 9, The Managing Director of the IMF said that the pandemic has inflicted a unique economic crisis in the last century and will require a massive response to ensure recovery. She said the world needs to prepare for “the worst economic fallout since the Great Depression.”

READ ALSO : IMF can help develop methods to respond to financing linked to Covid-19: FM to G20

The beneficiary countries are almost all in Africa, but also include Afghanistan, Yemen and Haiti.

Even in the best-case scenario, the IMF only expects a ‘partial recovery’ next year, assuming the virus wears off later in 2020, allowing normal activities to resume as lockdowns imposed. to contain its spread are lifted.

Billions of people living in countries on the brink of economic collapse are even more threatened by a looming debt crisis, according to a UN report.

READ ALSO : Covid-19: Poor Countries Facing Debt Crisis, UN Report Says

The UN-led interagency task force, in its report on financing for development, suggested steps governments need to take to avoid debt overload and deal with the economic and financial devastation caused by the pandemic.

“The global community was already lagging behind in efforts to end poverty, take climate action and reduce inequalities,” said UN Deputy Secretary-General Amina Mohammed.

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