UK helps world’s poorest countries withstand the economic disruption of coronavirus

Vulnerable countries will be better protected from the economic disruption caused by the COVID-19 outbreak thanks to support announced by the Chancellor Rishi Sunak.

Up to £150 million of new UK aid will go to the International Monetary Fund’s Catastrophe Containment and Relief Trust (CCRT) to help developing countries deal with the short term economic disruption caused by coronavirus, allowing them to focus their spending on tackling the outbreak.

Countries will receive support if they experience a severe decline in national income or falling government revenues as a result of coronavirus. This will help lessen economic disruption, particularly where vulnerable countries might otherwise default on debt repayments and trigger further economic impacts.

COVID-19 has already had a major impact on oil prices and global stock markets in recent weeks. The IMF fund is designed to lessen the disease’s future global economic impact, which will also safeguard the UK economy.

“To support the global response, I’m also making new funding of £150m available for the IMF’s relief efforts,” said Chancellor of the Exchequer Rishi Sunak.

UK aid is already at the centre of the coronavirus response. Since the outbreak began £91 million has been invested in the research of vaccines and diagnostic tests, and in supporting the World Health Organization and developing countries to prevent the virus spreading around the world. Today’s announcement brings the UK’s total commitment to the international coronavirus response to up to £241 million.

Original source: DFID
Published on 11 March 2020