IMF extends debt service relief to 28 low-income countries

Wale Ameen
Online Editor

The Executive Board of the International Monetary Fund (IMF) has approved grants for debt service relief for 28 member countries under its Catastrophe Containment and Relief Trust (CCRT).

This was contained in a statement issued via its website this Monday.

This follows the earlier approval of two tranches on April 13, 2020 and October 2, 2020.

It enables the disbursement of grants from the CCRT for payment of all eligible debt service falling due to the IMF from its poorest and most vulnerable members from April 14, 2021 to October 15, 2021, estimated at SDR 168 (US$238) million.

According to the IMF, this tranche of grants for debt service relief will continue to help free up scarce financial resources for vital emergency in areas like health, social and economic support to help ameliorate the impact of the COVID-19 pandemic.

Subject to the availability of sufficient resources in the CCRT, the international monetary organisation says debt service relief could be provided for the remaining period from October 16, 2021 to April 13, 2022 which will amount to a total of about SDR 680 (US$964) million.

IMF Managing Director, Kristalina Georgieva had earlier in March 2020 launched an urgent fundraising to raise SDR 1 billion (US$1.4 billion) in grants for the CCRT.

This would enable the CCRT to provide financial assistance for relief on debt service for up to a maximum of two years, while leaving the CCRT adequately funded for future needs. Thus far, top donor countries from the European Union, the UK, Japan, Germany and France have contributed about SDR 545 million (US$774 million).

Others are the Netherlands, Switzerland, Norway, Singapore, China, Mexico, Philippines, Sweden, Bulgaria, Luxembourg, and Malta.