Coronavirus: IMF Executive Board approves immediate debt relief for 25 countries

In the wake of global Coronavirus crisis, the International Monetary Fund's (IMF) Executive Board has approved immediate debt service relief to 25 poor countries. IMF Executive Director Kristalina Georgieva issued a statement saying the IMF executive board approved the immediate debt service relief for 19 African countries, Afghanistan, Haiti, Nepal, Solomon Islands, Tajikistan and Yemen.

'I urge other donors to help us replenish...'

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," she added.

The countries that will receive debt service relief today are -- Afghanistan, Benin, Burkina Faso, Central African Republic, Chad, Comoros, Congo, The Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mali, Mozambique, Nepal, Niger, Rwanda, Sao Tome and Principe, Sierra Leone, Solomon Islands, Tajikistan, Togo, and Yemen.

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"The CCRT can currently provide about USD 500 million in grant-based debt service relief, including the recent USD 185 million pledge by the UK and USD 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," said Georgieva.

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Last week, the World Bank said it would roll out $160 billion in emergency aid over 15 months to help countries stricken by the virus, including $14 billion in debt repayments from 76 poor countries to other governments.

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(With agency inputs)