IMF to provide immediate debt service relief to 25 member countries

Reuters reports that the International Monetary Fund on Monday said it would provide immediate debt service relief to 25 member countries under its Catastrophe Containment and Relief Trust to allow them to focus their scarce resources on fighting the coronavirus pandemic.

IMF Managing Director Kristalina Georgieva in a statement said the Fund's executive board on Monday approved the first batch of countries to receive grants to cover their debt service obligations to the Fund for an initial six months.

She said the CCRT currently had about $500 million in resources, including new pledges of $185 million from Britain, $100 million from Japan, and undisclosed amounts from China, the Netherlands and others. The Fund is pushing to raise the amount available to $1.4 billion.

Key notes

• IMF says will disburse debt relief to 25 countries under catastrophe containment and relief trust (CCRT).
• Says will provide about $500 mln in grant-based debt relief to help countries address pandemic.
• Says money for CCRT includes $185 mln from UK and $100 mln from japan, also pledges from china, Netherlands and others.

Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF) issued the following statement:

“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.

“The CCRT can currently provide about US$500 million in grant-based debt service relief, including the recent US$185 million pledge by the U.K. and US$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.”

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