IMF approves debt relief plan for 25 countries battling COVID-19

International Monetary Fund (IMF) approved immediate debt relief to 25 member countries under its Catastrophe Containment and Relief Trust (CCRT) to dress ecomic impact of COVID-19. Kristalina Georgieva, Managing Director of IMF, said in a statement that Executive Board approved immediate debt service relief to 25 members countries including Afghanistan, Nepal, Yemen, Gambia, DR Congo, Niger, and Rwanda among ors.

“This provides grants to our poorest and most vulnerable members to cover ir IMF debt obligations for an initial phase over next six months and will help m channel more of ir scarce financial resources towards vital emergency medical and or relief efforts,” said Georgieva.

Under CCRT, IMF can provide around $500 million which includes recent pledges of $185 million and $100 million by UK and Japan respectively. Georgieva said that or countries including China and Nerlands are also stepping forward with “important contributions”, urging or dors to replenish resources and boost IMF’s ability to provide ditional debt relief for a full two years to poorest member countries.

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Apart from CCRT, IMF has approved loans for several or countries under emergency financing and Rapid Credit Facility. Last month, Georgieva h assured that IMF is rey to respond to threat of coronavirus including $50 billion of financial support. She said that IMF has rapid-disbursing emergency financing of up to $10 billion for low-income countries that can be accessed without a full-fledged IMF program.

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'Concerned about low-income members'

66-year-old Bulgarian ecomist h also said that or members can access emergency financing through Rapid Financing Instrument. Georgieva ded that she is particularly concerned about low-income and more vulnerable members which may see a rapid rise in financing needs as ecomic and human cost of virus escalates.

“Our staff are currently working on identifying vulnerable countries and estimating potential financing needs should situation deteriorate furr,” she wrote in a blog.

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(Im source: AP)