The International Monetary Fund (IMF) board approved the debt relief for the twenty five poorest countries, nearly all in Africa, only with the exception of Afghanistan, Yemen, Nepal and Haiti.
The IMF on Monday April 13th announced immediate debt relief for African dominated 25 poor countries to help them free up funds to fight the COVID-19 pandemic.
Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF) said in a 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," IMF Chief said.
The fund together with the World Bank have called for rich nations to stop collecting debt payments from poor countries from May 1 through June 2021.
The debt relief will be funded by the IMF's Catastrophe Containment and Relief Trust (CCRT), which was first set up to combat the West Africa Ebola outbreak in 2015 and has been repurposed to help countries fend off COVID-19.
The fund currently has $500 million, with Japan, Britain, China and the Netherlands among its main 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 said.
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. According to AFP.
The fund together with the World Bank have called for rich nations to stop collecting debt payments from poor countries from May 1 through June 2021.
The debt relief will be funded by the IMF's Catastrophe Containment and Relief Trust (CCRT), which was first set up to combat the West Africa Ebola outbreak in 2015 and has been repurposed to help countries fend off COVID-19.
The fund currently has $500 million, with Japan, Britain, China and the Netherlands among its main 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 said.
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. According to AFP.
African countries are continually been poor in the midst of the abundant human and natural resources because of the leadership that are still not independent but perpetually remain as pro European and American in servitude service, corruptly returning the proceeds from African resource to replenishing the foreign and former colonial nations who in turn give grants and loans for the African nations to continue servicing endless debts.
IMF and World Bank are very kind and generous to have com up with all shorts of relief amidst the coronavirus pandemic.
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