The Worldwide Financial Fund on Monday introduced instant debt aid for 25 poor international locations to assist them unencumber funds to combat the coronavirus 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 Managing Director Kristalina Georgieva mentioned in an announcement.
The IMF board authorized the debt aid for the international locations, practically all in Africa, but additionally Afghanistan, Yemen, Nepal and Haiti.
The fund along with the World Financial institution have known as for wealthy nations to cease gathering debt funds from poor international locations from Could 1 via June 2021.
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The debt aid will likely be funded by the IMF’s Disaster Containment and Aid Belief (CCRT), which was first set as much as fight the West Africa Ebola outbreak in 2015 and has been repurposed to assist international locations fend off COVID-19.
The fund presently has $500 million, with Japan, Britain, China and the Netherlands amongst its foremost contributors.
“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 mentioned.
Final week, the World financial institution mentioned it could roll out $160 billion in emergency help over 15 months to assist international locations affected by the virus, together with $14 billion in debt repayments from 76 poor international locations to different governments.